Can I escape a double quote in a verbatim string literal?

Use a duplicated double quote.

@"this ""word"" is escaped";

outputs:

this "word" is escaped

Use double quotation marks.

string foo = @"this ""word"" is escaped";

For adding some more information, your example will work without the @ symbol (it prevents escaping with \), this way:

string foo = "this \"word\" is escaped!";

It will work both ways but I prefer the double-quote style for it to be easier working, for example, with filenames (with lots of \ in the string).