This is the 167th most frequent Spanish word.
dice
"Dice" in Spanish means "says" in English.
In this sentence, 'dice' is the third person singular form of the verb 'decir' (to say/to tell) in the present tense.
Él me dice que vendrá mañana.
He tells me that he will come tomorrow.
Here, 'dice' is also the third person singular present tense form of 'decir,' referring to what 'la gente' (the people) say.
No te preocupes por lo que la gente dice.
Don't worry about what people say.
In this context, 'dice' remains as the verb 'say/tell,' but it is part of a descriptive configuration to narrate the boy's claim.