The answer is: true.
Cervantes, the author of Don Quixote, indeed makes use of irony to satirize the culture of his time. His novel, is, in fact, a lot more than a satire —it is, after all, the first modern novel—, however, irony is most present in his narrative especially in the guise of Sancho Panza who many claim is an intricate and complicated caricature of Spaniards´ worldly and mundane preoccupations and their historically innate sense of existential but practical, often comical, understanding of life.