Answer:
The reader infers that the protagonist says he isn´t crazy, but the protagonist doesn´t mean what he says.
Step-by-step explanation:
Situational irony is a literary device used to mislead the reader. It occurs when there is an incongruity between the expectations that the writer is giving and what happens.
From the options given the one that best fits is option 3 because the reader is inferring something and then is misled.
I hope this answer helps you.