The correct distinction between dramatic irony and verbal irony is:
Dramatic irony is when the audience knows something that contrasts with a character’s expectations, while verbal irony is when someone says something that is the opposite of what they mean.
This definition accurately captures the essence of both terms: dramatic irony involves a gap in knowledge between the audience and a character, creating tension or humor, while verbal irony involves a person stating something that contrasts with their actual meaning, often for emphasis or sarcasm.