I'm working on the assumption that your 128k is not a 512k upgrade and that it doesn't have socketed chips. Now would be a good time to install sockets if you suspect more RAM may fail in the future.
I also assume that the RAM is addressed sequentially. If the chips are interlaced (i.e. chip 0 is the first bank, chip 2 is the second, chip 1 is the third, or something silly like that) someone please correct me. Correct me as well if I'm totally off base here because this is a whole load of assumptions due to me not having a 128k to compare.
8 kilobytes per chip in a stock Mac 128 (64kbits per MT4264 chip = 8 kiB). Error code byte 1 is 04 indicating it failed the mod3 test, and feff indicates the failed address 0xfeff.
For each least-significant-byte of the address, that's 128 bits. 0xffff (highest address) - 0xfeff (error address) = 0x0100 (or 256) bytes from the end of the memory map.
I would wager the last chip in the entire memory bank is bad. I think that's G12, again, someone correct me if I'm wrong.
EDIT: typo