説話 is read as せつわ (setsuwa) and means tale.
せつわ
setsuwa
せつわぶんがく
legendary literature
せつわしゅう
collection of stories (esp. myths, legends, etc.)
みんかんせつわ
folk tale
はくわしょうせつ
novel written in colloquial Chinese
せつめい
explanation
せっとく
persuasion
せっきょう
remonstration
せつ
opinion
とく
to explain
せつめいしょ
(printed) instructions
せつめいぶん
explanatory note
せっぽう
lecture