Final answer:
The passage that exemplifies foreshadowing in Washington Irving's 'The Legend of Sleepy Hollow' describes the supernatural stories prevalent in the vicinity of Sleepy Hollow, setting the stage for ominous events related to the haunted nature of the area.
Step-by-step explanation:
The excerpt from Washington Irving's The Legend of Sleepy Hollow that utilizes foreshadowing is:
"The immediate cause, however, of the prevalence of supernatural stories in these parts, was doubtless owing to the vicinity of Sleepy Hollow. There was a contagion in the very air that blew from that haunted region; it breathed forth an atmosphere of dreams and fancies infecting all the land. Several of the Sleepy Hollow people were present at Van Tassel's, and, as usual, were doling out their wild and wonderful legends. Many dismal tales were told about funeral trains, and mourning cries and wailings heard and seen about the great tree where the unfortunate Major André was taken, and which stood in the neighborhood."
This passage sets the tone for supernatural occurrences and hints at the eerie events that will follow, particularly emphasizing the haunted nature of Sleepy Hollow which is central to the story's plot. The references to the contagious atmosphere and the prevalence of ghost stories among the inhabitants suggest something ominous will happen, thereby serving as a foreshadowing device.