Final answer:
The example of narrative irony in the given quote from Fate/irony is that Santiago doesn't know why he is going to be killed.
Step-by-step explanation:
Narrative irony is a literary device where there is a contrast between what is expected to happen and what actually happens.
In the given quote from Fate/irony, the example of narrative irony is option 1) Santiago doesn't know why he is going to be killed.
This is ironic because the reader expects Santiago to have knowledge about the reason for his impending death, but he is portrayed as clueless.
This creates a sense of suspense and surprise for the reader.