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Step 1. Move the Book item out of the Folder item. You can do this by editing the Book and changing it's location field from the Folder item to My Portfolio, and then saving the edit.
You can also do it by using the Portfolio mass utility tool in the PORTFOLIO tools between your HIGHLIGHTED ITEMS and your regular item listing on your Portfolio page. Click the gear icon to open the manage area, click on the Move to Folder option, find the Book item and tick its checkbox, then go back to the manage area and set the drop menu to My Portfolio (if it isn't already) and click the Move button.
Or by using the Portfolio/Portfolio Organizer which opens in a pop-up window - see the directions in the ? at the top.
Step 2. Once the Book item is out of the Folder and the Folder is empty, use the Delete Item option in the Folder's Item Tools menu (gear icon at the upper right) to delete the item like normal. To get rid of it permanently, purge it from your Recycle Bin at the bottom of your Portfolio item listing.
Hope that helps.