Okay kiddo, imagine there are tiny little creatures that live in the forests of a far-off land. They're called "krasnoludek," which means "little dwarf" in a language called Polish. Krasnoludek are very cute and can be mischievous sometimes, much like pixies or fairies in Western folklore. They're said to wear little red hats, which is why they're sometimes called "redcaps."
Some people in the real world like to make little statues or figurines of krasnoludek, as a kind of decoration or good-luck charm. They'll put them in their gardens or on their windowsills, and maybe even give them little tools or instruments to look like they're doing something.
So there you have it, krasnoludek are just tiny little imaginary creatures from another culture. Isn't that neat?