A situation in which the audience knows more than the character does, is an instance of

The situation where the audience knows more than the character does is an instance of dramatic irony. Dramatic irony is a literary device in which the audience or reader knows information that a character does not. This creates tension and suspense in the story, as the audience is aware of something important that the character is not. It can also be used for comedic effect, as the audience finds humor in the character's ignorance. In literature and drama, this technique can be used to reveal important plot twists or character insights to the audience before the characters in the story become aware of them.