Answer:
3. The excerpt is an example of situational irony, as Jim has sold the watch for which Della bought a chain.
Explanation:
Irony is the use of language in such a way that the intended meaning of the words is expressed through the use of another opposite expression or words. This rhetorical device presents a situation as something but what the reality is, is a much different thing.
In the given excerpt from O Henry's short story The Gift of the Magi, the scene is that of situational irony. Situational irony occurs when the expected outcome is not what happened but rather the opposite happens. Likewise, the scene is a situational irony for both the characters of Jim and Della wanted to please each other with their gifts. But both ended up selling the very thing that the other person has bought the gift for. Della sold her hair to buy a watch chain for Jim while Jim sold his watch to buy an ornamental comb for Della's hair.
Thus, the correct answer is the third option.
