The correct answer is B. 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.
Dramatic irony occurs when the audience has knowledge that the characters do not, leading to a contrast between the character's understanding and the actual situation. Verbal irony, on the other hand, involves a speaker saying something but meaning the opposite, often for humorous or emphatic effect.