Mine only says refresh, I cannot remove the folder either
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Worked it out need to turn off syncing
If so, then this folder is defined as a 'synced folder' and will not shown under 'Other folders'.
You can check this in the Account-specific settings:
> Long-press on account name -> Options and folders -> (manage) Folders -> tap on the folders name -> check, if the option 'Sync' or 'Do not sync' is enabled.