This is the 3182nd most frequent Dutch word.
fraaie
"Fraaie" means "beautiful" or "fine" in English.
The word 'fraaie' here is an adjective describing the quality of the drawing, implying it is aesthetically pleasing and skillfully done.
De schilder maakte een fraaie tekening van het landschap.
The painter made a fine drawing of the landscape.
'Fraai(e)' in this sentence refers to the pleasing and elegant appearance of the dress.
Ze droeg een fraaie jurk naar het feest.
She wore a beautiful dress to the party.
In this case, 'fraaie' characterizes the anecdote as delightful or interesting rather than aesthetic in nature.