In literature, making fun of human failing, often for the purpose of addressing social injustice, is known as burlesque realism satire understatement

The best answer here is satire. We can determine this with process of elimination. Burlesque is similar to satire in that it makes fun of human failings by creating a caricature. However, the difference between satire and burlesque is that burlesque just makes fun of it, they don't utilize it to address social injustice.

Realism is exactly what the word implies. It is a literary movement that strives to present things exactly as they are, without embellishment. Because of this, it can't be the answer to your question.

Understatement is also exactly what it implies. A writer uses this to imply that something--a situation, character, etc.--is not as important as it seems. That is why understatement can't be the answer here.

Satire is the correct answer.