POP MUSIC : Grammy’s Family Affair : Our handicapper expects Natalie Cole to do her father Nat’s memory proud with nominations alongside R.E.M. and Michael Bolton

Two years ago, when Nat King Cole received a posthumous Lifetime Achievement Award at the Grammy ceremonies, who would have guessed that a collection of his songs would be the front-runner to win the 1991 award for best album?

It seemed at the time that the trustees of the National Academy of Recording Arts & Sciences were simply remembering an old friend (and a great talent) on the 25th anniversary of his death. But they were, perhaps unwittingly, setting the stage for a Nat Cole revival.

Last year, Natalie Cole’s “Unforgettable,” a collection of her father’s most prized songs from the 1940s and ‘50s, stunned the music industry by hitting No. 1. The album has sold more than 3 million copies and is still going strong.

And when the nominations for the 34th annual Grammy Awards are announced on Wednesday, “Unforgettable” is certain to be in the running for album of the year. In addition, the title track--a duet in which Natalie sings along with a 1951 recording by her father--is likely to be nominated for best record.

Cole’s strong showing should please the older or more conservative members of the 7,000-member academy, which sponsors the annual competition.

But this week’s nominations are also likely to cheer younger, more progressive voters. R.E.M., the critically hailed college-alternative rock band from Athens, Ga., is also expected to be a contender for both of the top awards.

“Out of Time,” the group’s seventh and most successful album, and the song “Losing My Religion,” its moody tale of doubt and uncertainty, will appeal to the same voters who propelled the Police and U2 into the finals in recent years.

If all signs point to a best-album victory for Cole when the Grammys are handed out Feb. 25 in New York, R.E.M. won’t go back to Athens empty-handed. “Out of Time” is a cinch to win for best alternative album, and tracks from the collection may also win in other categories.

Here’s how the races are likely to shape up in key categories:

* Album of the Year--Look for Cole and R.E.M. to square off against balladeer Michael Bolton, a Grammy favorite who is coming off his biggest year. Bolton’s album “Time, Love and Tenderness” reached No. 1 and spawned three straight Top 10 singles.

Red-hot country star Garth Brooks’ “Ropin’ the Wind” figures to become the first country album by an individual artist to make the finals since Kenny Rogers’ “The Gambler” in 1979.

Paul Simon’s critically admired “The Rhythm of the Saints” is likely to take the fifth spot, even though it has vanished from the national sales charts. Simon’s previous album, “Graceland,” won the top award five years ago.

The list of likely runners-up includes Bonnie Raitt’s “Luck of the Draw,” Mariah Carey’s “Emotions,” Sting’s “The Soul Cages” and Whitney Houston’s “I’m Your Baby Tonight.” All four artists were nominated with their last albums. In fact, Sting earned nominations with his last three albums (counting the final Police album). “Cages,” however, didn’t have the commercial staying power of its predecessors.

Other possibilities: C+C Music Factory’s “Gonna Make You Sweat,” Metallica’s “Metallica,” Prince & the New Power Generation’s “Diamonds and Pearls” and Luther Vandross’ “Love Power.”

* Record of the Year--”Unforgettable” and “Losing My Religion” will do battle with Bryan Adams’ “Everything I Do (I Do It for You),” the top-selling single since “We Are the World” in 1985. Adams’ rock-lite ballad, from the movie “Robin Hood: Prince of Thieves,” was last year’s No. 1 pop and adult contemporary hit.

Carey, who was nominated in this category last year with her breakthrough hit “Vision of Love,” is likely to return to the finals with the frisky “Emotions.” Carey, who won two Grammys at last year’s event, had a big year and is a top priority at her label, Sony Music.

There is a tight race for the fifth spot between Raitt’s long-in-coming Top 40 breakthrough “Something to Talk About,” Houston’s torchy ballad “All the Man That I Need” and C+C Music Factory’s dance-floor smash “Gonna Make You Sweat.” The edge goes to Raitt, who was the queen of the Grammys two years ago with her album “Nick of Time.”

In an odd twist, Bolton may receive more votes for record of the year than any other artist and still miss the finals. That’s because his support will be split among three hits of roughly equal weight: “Love Is a Wonderful Thing,” “Time, Love and Tenderness” and “When a Man Loves a Woman.”

Also possible: Crystal Waters’ “Gypsy Woman (She’s Homeless),” Oleta Adams’ “Get Here,” Gloria Estefan’s “Coming Out of the Dark,” Jesus Jones’ “Right Here, Right Now” and Vandross’ “Power of Love/Love Power.”

* Best New Artist--The biggest obstacle C+C Music Factory will face on the way to a Grammy in this category is the memory of the discredited 1990 champs, Milli Vanilli. But even though some Grammy voters may be apprehensive about voting for another dance-music ensemble in the wake of Vanilligate, C+C’s combination of mass popularity and critical acclaim will likely prove irresistible. Besides, group masterminds Robert Clivilles and David Cole have a high profile in the industry (they produced Carey’s hit “Emotions”) and have left no doubt that, unlike Rob and Fab, they are the brains of the act.

Other likely nominees: country singer Tricia Yearwood, pop-R&B; upstarts Color Me Badd, balladeer Crystal Waters and Motown teen group Boyz II Men. Also possible: Gerardo, P.M. Dawn, EMF, Another Bad Creation, Naughty by Nature, the KLF, Seal, Marc Cohn.

In the remaining categories, artists can be nominated for albums, singles or album tracks:

* Best Pop Vocal Performance, Female--Raitt won here two years ago and is likely to repeat with her hit single “Something to Talk About.” Also: Houston’s “All the Man That I Need,” Carey’s “Emotions,” Estefan’s “Coming Out of the Dark,” Amy Grant’s “Baby Baby.”

* Pop Male--Though critics scorn Bolton, many of the artists, songwriters and producers in the academy love him. So he’s probably headed for a repeat win in this category with “Time, Love and Tenderness.” Also: Aaron Neville’s “Warm Your Heart,” Bryan Adams’ “Everything I Do (I Do It for You),” Simon’s “The Rhythm of the Saints,” Sting’s “The Soul Cages.”

* Pop Duo or Group--As a likely best-record finalist, R.E.M.’s “Losing My Religion” is the front-runner, but anything could happen. Also: C+C Music Factory’s “Gonna Make You Sweat,” Wilson Phillips’ “You’re in Love,” Aaron Neville and Linda Ronstadt’s “Close Your Eyes,” Prince & the New Power Generation’s “Cream.”

* Traditional Pop--With her “Unforgettable” album and single, Natalie Cole will likely be competing with herself in this new category honoring pre-rock pop styles. Also: Harry Connick Jr.’s “Blue Light, Red Light,” Barbra Streisand’s “Warm All Over,” Johnny Mathis’ “In a Sentimental Mood: Mathis Sings Ellington.”

* Rock Solo--For the second time in five years, there weren’t enough female solo rockers entered in the competition to field a separate category under academy rules. So women are once again being lumped in with men. That will make Raitt’s expected victory with “Luck of the Draw” all the sweeter. Also: Eric Clapton’s “24 Nights,” Bryan Adams’ “Can’t Stop This Thing We Started,” Robbie Robertson’s “Storyville,” Lenny Kravitz’s “Mama Said.”

* Rock Duo or Group--Guns N’ Roses created the biggest stir of any rock band last year, which could lead to a win for its Top 10 hit “Don’t Cry.” Also: R.E.M.’s “Radio Song,” Tom Petty & the Heartbreakers’ “Into the Great Wide Open,” Red Hot Chili Peppers’ “Blood Sugar Sex Magik,” Dire Straits’ “On Every Street.”

* Hard Rock--Grammy voters love Metallica, which should give the band’s hit single “Enter Sandman” a slight edge over Guns N’ Roses’ “Use Your Illusion” albums. Also: Aerosmith’s “What It Takes,” Motley Crue’s “Decade of Decadence,” Firehouse’s “Firehouse.”

* Metal--Easiest call of the year: Metallica will sweep this category for the third year in a row with its chart-topping album “Metallica.” Also: Anthrax’s “Attack of the Killer B’s,” Megadeth’s “Hangar 18,” Soundgarden’s “Badmotorfinger,” Testament’s “Souls of Black.”

* R&B; Female--For the past six years, this award has gone to either Anita Baker or Aretha Franklin. But Baker didn’t release a new album, and Franklin’s last album, “What You See Is What You Sweat,” was poorly received. That’s good news for Oleta Adams, who could take it all with “Get Here.” Also: Gladys Knight’s “Good Woman,” Karyn White’s “Romantic,” Vanessa Williams’ “Runnin’ Back to You,” Pebbles’ “Giving You the Benefit.”

* R&B; Male--Vandross, who had to wait 10 years to win his first Grammy, will likely win his second in a row with “Power of Love/Love Power.” Also: Stevie Wonder’s “Gotta Have You,” Teddy Pendergrass’ “It Should’ve Been You,” Peabo Bryson’s “Can You Stop the Rain,” Johnny Gill’s “Wrap My Body Tight.”

* R&B; Duo or Group--Color Me Badd, the hit group that spun off from the “New Jack City” soundtrack, has the edge with “I Wanna Sex You Up.” Also: BeBe & CeCe Winans’ “I’ll Take You There,” Franklin and Vandross’ “Doctor’s Orders,” En Vogue’s “You Don’t Have to Worry,” Boyz II Men’s “It’s So Hard to Say Goodbye to Yesterday.”

* Rap Solo--Hammer’s “Too Legit to Quit” wasn’t released in time for the 1991 eligibility year (which ended Sept. 30), but the Oakland rapper is likely to repeat here anyway with “Here Comes the Hammer,” an eligible single from his last album. Also: LL Cool J’s “Mama Said Knock You Out,” Queen Latifah’s “Nature of a Sista’,” Ice-T’s “New Jack Hustler,” Young M.C.’s “Brainstorm.”

* Rap Duo or Group--DJ Jazzy Jeff & the Fresh Prince are likely to win for the third year in a row with the silky “Summertime.” Also: Salt-N-Pepa’s “Do You Want Me,” Naughty by Nature’s “O.P.P.,” Public Enemy’s “Apocalypse 91 . . . The Enemy Strikes Black,” Marky Mark & the Funky Bunch’s “Good Vibrations.”

* Country Female--Tanya Tucker, the winner at the recent Country Music Assn. Awards, may have a slight edge with “Down to My Last Teardrop.” Also: Reba McEntire’s “For My Broken Heart,” Dolly Parton’s “Eagle When She Flies,” Kathy Mattea’s “Time Passes By,” Mary-Chapin Carpenter’s “Down at the Last Twist & Shout.”

* Country Male--Brooks (“Ropin’ the Wind”) is likely to avenge his recent CMA loss to Vince Gill (“Pocket Full of Gold”). Also: Clint Black’s “Put Yourself in My Shoes,” Travis Tritt’s “Here’s a Quarter (Call Someone Who Cares),” Randy Travis’ “High Lonesome.”

* Country Duo or Group--The Judds, who recently completed the longest farewell tour in show-biz history, can’t miss with “Love Can Build a Bridge.” Also: Kentucky HeadHunters’ “Electric Barnyard,” Shenandoah’s “The Moon Over Georgia,” Highway 101’s “Bing Bang Boom,” Restless Heart’s “Long Lost Friend.”