What best defines "dramatic irony"?

Dramatic irony occurs when the audience possesses knowledge or information that the characters in a story do not, creating a layer of tension and engagement. This situation allows viewers or readers to understand the implications of actions or statements made by the characters, leading to a richer emotional experience. For example, if a character plans a surprise party, but the audience knows that the character is about to walk into a trap, the dramatic irony heightens the suspense and adds depth to the narrative.

The other options describe different literary concepts. Predicting future events involves foreshadowing, learning a pivotal truth pertains to character development or revelation, and unexpected plot twists relate more to narrative surprise rather than the specific relationship between audience knowledge and character ignorance.