What kind of statement is an exaggerated remark used for humor or dramatic effect?

The correct answer is hyperbole, as it refers to an exaggerated statement or claim that is not meant to be taken literally. Hyperbole is often used in literature, spoken language, and everyday conversation to create a strong impression, emphasize a point, or evoke humor. For example, saying "I'm so hungry I could eat a horse" uses hyperbole to dramatically express extreme hunger without literally meaning one would eat an entire horse.

In contrast, the other options do not fit this definition. A metaphor is a figure of speech that makes a comparison between two unrelated things by stating one thing is another, while an oxymoron juxtaposes contradictory terms to create a unique expression (like "deafening silence"). An understatement, on the other hand, minimizes the significance of something, often for humorous effect but in a different manner than hyperbole.