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I have the following exercise:

enter image description here

And here is a demonstration of how to apply those typography rules:

enter image description here

I am not familiar with the term folio leading and cannot find anything useful on it on the Internet. What does it mean? Or can you deduce its meaning from the above?

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    Welcome to Graphic Design SE. Please note that we prefer one question per question and will not do your homework for you. I therefore edited your question to reduce it to something that will hopefully help you. Feel free to ask your remaining question separately, but if you do, please elaborate more about what you already understood and focus on understanding the concept, not on us solving your homework for you. – Wrzlprmft May 30 at 9:03
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    You should ask whomever is assigning this task. "Folio" by definition never means type size or anything related to type size. The only possible use of "folio" in relation to type, is page numbering. Sometimes page numbers can be referred to as "folios". Otherwise, "folio" revers to the actual pages, i.e. sheets of paper/stock. – Scott May 30 at 20:45
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    But..Folio is also the name of a typeface from Linotype... so.... It's feasible that all those specifications are as they relate to the Folio typeface. – Scott May 30 at 20:55
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According to the image, "folio" is what they are referring to as the fine print. Therefore "folio leading" would be the leading (the line spacing) of the folio copy.

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