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[Lord of the Rings] The shire and wood elves

Shortly after Frodo and Sam depart, but before they meet up with the other two hobbits, they spend the night and see wood elves marching.  I assume their still in the shire.    But earlier, one of the crotchety hobbits at the bar talk about how goblins and what not are mystical creatures and how Bilbo is crazy.

Would the average shire citizen be aware of elves? Or even enough to know wood elves vs other elves?  Frodo identifies them as wood elves and knows where they are going, but I guess he could be more learned than the average hobbit.
gpt
Frodo was indeed more educated than the average Hobbit. He was quite likely the most "cultured" hobbit in the entire Shire. Bilbo told him stories that turned him on to the outside world and enlisted a curious, learning attitude in him at a young age. Most of the Shire citizens would have been well aware of elves, goblins, dwarves and other races outside the Shire though very few would have ever seen or interacted with them. Many different races came through Bree which was about half inhabited by Hobbits and there was consistent trade with that area to the Shire. The hobbits of the Shire generally had no interest in meeting any of the other inhabitants of Middle Earth and were quite happy with the quaint life they lived.