Final answer:
Irony is present in Irving's depiction of Rip Van Winkle as naïve yet fascinated by ludicrous tales, and in the readers of 'Life in the Iron Mills,' who are well-off and detached from the harsh realities of industrial life being critiqued.
Step-by-step explanation:
The irony in Washington Irving's description of Rip Van Winkle and his friends in 'The Legend of Sleepy Hollow' stems from the juxtaposition of Rip's credulity and the incredible, often supernatural stories that captivate him. Irving portrays Rip as someone who is simple-minded yet oddly shrewd, suggesting a character that is both naive and slyly astute in certain aspects of daily life. Rip's belief in marvellous tales is ironic given his simplistic nature and it reflects the gentle satire of the narrative where extreme gullibility exists alongside common sense.
The irony further deepens with the description of Davis's story readers and the ecocritic interpretation of 'Life in the Iron Mills.' Readers from privileged classes would have a grim awakening upon confronting the stark realities of industrial workers, which contrasts with their otherwise distant affluence. This engenders an ironic situation where the very audience, likely untouched by such industrial squalor, is challenged to empathize with consequences of their own society's industrial pursuits.