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This is some kind of production silk. We are not 100% sure what it is or if it is complete as there are no instructions but here is what we would do with it.
This is 36" Multi Colored Tie Dye Silk. There are actually two of them, stitched together at the edges. One corner has a 3 inch ribbon sewn to it and another corner has a 3" flexible plastic hoop sewn to it. This hoop creates an opening in the center of the silks.
We have seen things similar with 20th Century Silks (no hoop but a pocket).
It is my guess that you would load the inside of this large silk with several large silks knotted together at the corners (or one long silk streamer) and leave a small corner protruding from the hoop.
Show both sides of the rainbow silk, while holding the ribbon and the hoop with protruding end. Bring those two corners together and tie the ribbon to the silk coming from the hoop and make a large chain of silks appear from the hoop pocket, by pulling and shaking the silk.
Or if you had a streamer, bunch up the silk after you tied it and reveal the 36" silk turned into a streamer by showing only the streamer as the silk would be bunched up in your hand.
Silk has wrinkles that can easily be fixed and a couple of stains (but it is not bad).