After more than 15 years covering everything Apple, it’s with a heavy heart we announce that we will no longer be publishing new content on iMore and the iMore forums will be closing as of November 1st, 2024.
Albums and folders are sometimes the same thing. Depends on where it is. In the photos app on iOS, they're called albums. Other places, like in the Box app, they're called folders. On iPhone, a folder is on the home screen and you put app icons in it.
I have no idea about "smart folders". What device are you inquiring about? Can you offer more information?