Which definition best fits "dramatic irony"?

Dramatic irony occurs when there is a significant discrepancy between what a character understands and what the audience is fully aware of. This creates a layered sense of tension and engagement, as the audience anticipates how the character will react once they realize the truth. In many stories, this type of irony enhances emotional depth, as viewers are privy to information that will significantly impact the character’s decisions and fate, leading to a more immersive experience.

The other options describe different literary devices or elements. For instance, comments by a character that reveal their thoughts pertain to internal monologue or soliloquy, serving to provide insight into a character’s psyche. A humorous situation stemming from a misunderstanding aligns more with situational irony or comedy rather than the self-awareness of a character’s circumstances. A sudden turn of events in the plot relates to plot twist or sudden change but does not inherently focus on the audience's knowledge versus the character's understanding. Thus, the definition of dramatic irony distinctly captures the essence of the audience-character knowledge gap that fundamentally shapes the narrative experience.