Theory:

File:
The output we obtain from any application is generally called ‘file’. Therefore, the application for particular purposes determines the nature of the file.
 
Folder:
A folder is a storage space that includes multiple files. We can create files as per the needs of the user’s.
 
For better understanding, we can look at the example of a bookshelf in a library. The individual book can be considered a ‘file’, and the whole set of books on a shelf can be considered folders.
 
When we right-click on the mouse, the popup menu appears on the screen with multiple options.
 
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Select the ‘NEW’ option, and a secondary menu comes up with another set of options.
 
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Select the ‘Folder’ option in the menu. You can now directly save your file(s) in the newly created folder.
 
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