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Short Answer: comic Relief
You have to read around this speech a little bit. Mephistopheles (a demon pretty high up in "the organization") comes in and Faustus makes the comment after all his incantations (which is above your quotation) that he (Meph) is really ugly and is better suited being an old Franciscan Friar -- not a thing you would expect a devil to be.
It's wit and an audience member would smile wryly at the comment. It is not belly shaking laughter. It is just wit, sharp and pointed. (Sort of like the devil himself).
Answer: Comic Relief
One other comment. Try fitting any other answer into those two lines. None of them will work.
Borges's story The Garden of Forking Paths can be considered to be a three dimensional chess game for a variety of reasons. First, like a game of chess, a nearly infinite number of possible outcomes are proposed through the story (just as how a chess game can allow for a variety of different outcomes). Also, chess is a game of choice, just as the Garden of Forking Paths - both the story itself and the novel of the same titles mentioned in the story - allows for the reader to, in essence, choose their own design and strategy. Furthermore, the lead character\protagonist in the story is manipulating events throughout the story to, in essence, score a "checkmate."
The book follows a fourteen-year-old boy living with his family on the Spokane Indian Reservation near Wellpinit, Washington for a school year. It is told in episodic diary style, moving from the start of the school year to the beginning of summer.
