What generally happens to the files inside a folder when the folder is renamed?

Correct answer: The files generally remain inside the same folder

The governing concept is the difference between a folder container and the items stored inside it. Renaming changes the folder’s label or path name, not the files contained in that folder, so the files generally remain there and retain their names and extensions. Deletion, moving, or changing extensions are separate operations and do not happen merely because the folder was renamed.