If they don't knit, just shrug. Really build up the suspense of your own talents.
If they do, then they shouldn't be asking you how because they should already know how to make one since felted bags are seriously that easy. Tell them about the Felted Bag class at the Knit Nook, starting Tuesday, February 10, 6-8 pm.
A felted bag is so easy, you don't even have to purl. And the washing machine does all the felting for you.
Do you want to make the flower, too? Well, that's another class that isn't starting until April. So you will have plenty of time to knit all sorts of felted bags and then you make flowers out of the scraps.