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.
Here's a bit more context to clarify:
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Dramatic Irony: This occurs when the audience has information that the characters in the story do not. This creates a sense of tension or anticipation, as the audience knows the potential consequences that the characters are unaware of.
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Verbal Irony: This is when a speaker says something but means the opposite, often used for humor or emphasis. The intended meaning differs from the literal meaning of the words spoken.
Thus, the third statement accurately captures the essence of both terms.