The statement that best describes the use of satire in this passage is: Reversal is used to show how Clover, representing the people, has changed ideals.
In this passage, Clover reflects on the stark difference between her initial hopes for equality and freedom after the rebellion and the grim reality of terror and oppression they currently face. This reversal of expectations highlights the disillusionment experienced by the animals (and, by extension, the people in a totalitarian regime) as they realize that their original ideals have been betrayed.