This is the 3792nd most frequent Japanese word.
はなし
"はなし" means "talk," "story," or "conversation" in English.
In this sentence, '話' ('はなし') is used to mean 'story'. It refers to the content or subject of a narrative or tale.
その話は本当ですか?
Is that story true?
Here, '話し' ('はなし') is used as part of the phrase '話し合い' ('はなしあい'), meaning 'discussion' or 'talk'. It emphasizes conversational exchange.
話し合いは必要です。
A discussion is necessary.
In this example, '話' ('はなし') again refers to 'story' or 'narrative', specifically those told by children in this context.