Correct Answer: To ensure the class 'Folder' can be used in a try-with-resources statement, it must implement the AutoCloseable interface to have an automatically invoked 'close' method when exiting the resource scope. Therefore, replacing 'class Folder' with 'class Folder implements AutoCloseable' at line n1 is necessary. Additionally, the 'close' method must be public to fulfill the contract of AutoCloseable, which states that the 'close' method in the implementing class must be public. This method should also include the required functionality, which fits the option of inserting 'public void close () throws IOException { System.out.print("Close"); }' at line n2. Hence, the necessary changes are to implement AutoCloseable and add a public 'close' method.