When Cassius asks Pindarus to report what he sees, Pindarus states that Titinius has been captured. Why is this event an example of irony?
At this point the audience knows that Titinius has not been captured.
Cassius says he cannot see well, but the strong-sighted Pindarus misinterprets what he sees.
Pindarus lies so that Cassius will and so leave Pindarus a free man.
Antony's troops are not capturing Titinius, but are cheering for him.
http://www.tnellen.com/cybereng/lit_terms/irony.html
The event described is an example of dramatic irony, where the audience is aware of something that one or more characters on the stage are not aware of. In this case, the audience knows that Titinius has not actually been captured, while Pindarus mistakenly believes that he has. Therefore, the correct answer is:
At this point, the audience knows that Titinius has not been captured.