Final answer:
The phrase describing an ugly sweater with exaggeratedly stretched sleeves is an example of Hyperbole, which is used to create a strong impression and is not meant to be taken literally.
Step-by-step explanation:
The phrase 'It's an ugly sweater with red plastic buttons and a collar and sleeves all stretched out like you could use it for a jump rope' is an example of Hyperbole. Hyperbole is a figure of speech that involves an exaggeration of ideas for the sake of emphasis. It's not intended to be taken literally but is used to create a strong impression and add a dramatic effect.
The exaggeration is evident here as the sleeves being so stretched that they could be used as a jump rope is clearly an overstatement for emphasis on how stretched out they are. Therefore, the correct answer is (c) Hyperbole.