Read the excerpt from "The Gift of the Magi."

"Isn't it a dandy, Jim? I hunted all over town to find it. You'll have to look at the time a hundred times a day now. Give me your watch. I want to see how it looks on it."

Instead of obeying, Jim tumbled down on the couch and put his hands under the back of his head and smiled.

"Dell," said he, "let's put our Christmas presents away and keep 'em a while. They're too nice to use just at present. I sold the watch to get the money to buy your combs. And now suppose you put the chops on."

Which best describes the use of irony in this excerpt?

The excerpt is an example of verbal irony, as Jim tells Della to put the presents away.
The excerpt is an example of dramatic irony, as the audience knows something that Jim does not.
The excerpt is an example of situational irony, as Jim has sold the watch for which Della bought a chain.
The excerpt is an example of dramatic irony, as the audience knows something that neither one of the couple knows.