Final answer:
The sentence suggests hyperbole by exaggerating the importance of love as a solution to life's challenges, implying it is the only thing one needs.
Step-by-step explanation:
The sentence 'I know things may seem hard, but all you need is love' does not directly demonstrate a typical example of figurative language.
However, it implies a form of hyperbole because it exaggerates the idea that love alone is enough to overcome any difficulty.
The sentence suggests that love is the most important and possibly the only necessary element to handle life's challenges.