Just a note:
'People in Canada understand French' is, of course, simply not true. [I realize Cagey was simply making a grammatical point, but it's relevant to address factual issues, I think. See below.]
is true with the qualification: in official, esp. federal government situations; this is to say that a person has a right to be served in French [=French is to be understood, should one use it in speaking to a representative of the federal government]. This is closer to 'understood' [e.g. in making a request], than 'people speaking,' though all federal employees dealing with the public in most areas, must 'get by' as least speaking French.
Of course what the quoted sentence is likely trying to say is, "French is an official language in Canada." This includes the existence of French versions of all key documents related to federal functioning.
Again, none of this relates to Cagey's formidable knowledge of the English language. I'm simply, as a Canadian resident, letting the OP know of some possibly relevant facts.