Final answer:
The excerpt from 'Animal Farm' demonstrates verbal irony, as Squealer's declaration of victory actually belies the significant loss of the windmill, highlighting the manipulation of language.
Step-by-step explanation:
The excerpt provided is an example of verbal irony, where the actual intent of the words spoken is opposite to their literal meaning. Squealer's proclamation of a victory is ironic because despite saying they've won, they have actually suffered a significant loss—the destruction of the windmill they've worked on for two years. Boxer's commitment to the cause and his trust in the leadership makes him overlook the evident setback, while Squealer uses language to manipulate the truth and convince the animals that a loss is a victory, showcasing the deceptive use of rhetoric in the novella.