The most common and most likely answer to this crossword clue is the 7 letter word NATIONS
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More clues leading to the result NATIONS
Buddy explains!

The straight part
We know that "folks" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case folks = nations.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does NATIONS mean?
NATIONS noun- A historically constituted, stable community of people, formed on the basis of a common language, territory, economic life, ethnicity and/or psychological make-up manifested in a common culture.
- A sovereign state.
- An association of students based on its members' birthplace or ethnicity.
- A great number; a great deal.