Hey Larren,
to get your folder option back
from start menu open run command in that type regedit.exe
in that go HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies\Explorer
in that there would be a file named NoFolderOption just right click on it and change the value to 0 or simply delete the key file
and then after saving restart the computer and you will find your missing folder option back
best of luck
KK