Translation:Do you live in Holland or in the other provinces?
Hollanders are people who live in the kingdon of the netherlands (including a few islands on the other side of the atlantic ocean like Aruba) . Nederlanders are the people who live in the coutry the netherlands, which is in europe. there are 12 provences in the netherlands, 2 of them are called noord-holland (north-holland) and zuid-holland(south-holland). these 2 is where duo is pointing at i think, however i think its a really confussing sentence AND IM NATIVE DUTCH!
I find this video very helpful: www.youtube.com/watch?v=eE_IUPInEuc
Basically it's historical: Holland was one of the more powerful of the Low Provinces back in the day. Today, North Holland and South Holland (together "Holland") comprise two of the twelve provinces of the Netherlands.
It is the same. When I say the netherlands to anyone I know in the UK they have no idea where I am referring to until I say Holland. And that is how it is. It wasn't until I moved to Holland that certain foreigners kept trying to remind me that I was getting mixed up with the provinces (rolls eyes).
Corrected sentence: "Wonen jullie in Noord/Zuid-Holland of in een andere provincie?"
Translation: "Do you live in North/South-Holland or one of the other provinces?"
The original sentence is wrong on so many levels. Let me try and elaborate from my point of view as a Dutch native:
Dutch mentality: Generally, Dutch people stick together. Because our country is so small it is easy to maintain friendships. When a friend moves within The Netherlands the longest distance you could possibly move away is ~370km. Despite that people usually tend to stick to the region they are born into.
Conclusion: when addressing a group of strangers I would assume they are from the same region.
Relevant fun facts:
Holland has 12 provinces.
Most people live in the provinces: Utrecht and Noord/Zuid-Holland. In fact, 7 out of 17million persons do. This region is called "de randstad".(edge of cities)
3.1 The province Holland, mentioned here, has been split into Noord and Zuid Holland in 1830 (according to wiki) and nowadays they are never mentioned as 1 entity.
3.2 When Dutch people talk about just Holland (in English or Dutch) they are only talking about the country itself. Not any of the provinces.
I hope this helps.
Disclaimer: facts presented I verified on wikipedia. Any statement or opinion offered here is not ment to generalise or offend anyone. A.k.a. not looking for a screenwar.