first, you want to be aware of the definition of a hyperbole: basically, it's an extreme exaggeration, but it isn't really meant to be taken seriously. in this paragraph, i would say that the exaggeration is penelope calling the dress "the most beautiful dress ever made" -- the reader knows that it probably isn't the actual most beautiful dress ever, especially bc everyone thinks of beauty differently, but the author included it to show how starstruck penelope was by the dress.
