The Folder Options dialog box lets users set many properties of Windows Explorer, such as Active Desktop, Web view, Offline Files, hidden system files, and file type. Folder option" is most usable thing in Windows System. You can do a lot by using Folder option like hide/show files etc.

Error Details : This operation has been cancelled due to restrictions in effect on this computer. Please contact your system Adminstrator.
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You must be signed in as and administrator to be able to do the steps in this tutorial.
1. Press Windows + R and type gpedit.msc then click on OK

2. A windows will appear. This is Local Group Policy. Now go to 
User Configuration → Administrative Templates → Windows Components → Windows Explorer. Now carefully watch the list there you will see "Remove the Folder Options menu item from the Tools menu " Right Click on this and click on Edit

3. Now select Disabled and Click OK
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4. Restart System.

Note - This tutorial is also useful if you want to Enable/Disable your folder option for some reason. Above method tells you how can you Enable Folder Option. If you want to Disable Folder Option. you just need to choose Enabled option from Image no 3 
In short :

To Enable Folder Options
Select Disabled or Not Configured and click on OK. (Image No 3)
NOTE: Not Configured is the default setting.

To Disable Folder Options
Select Enabled and click on OK. (Image No 3 but you just need to choose Enabled)

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