This word uses double kun'yomi for its reading, probably because it's like two separate words (village and person) put together into one big word. You should know these two kun'yomi readings (it's the main reading for 村 that you learned and you should know 人 by now), though you will need to look out for the rendaku'd びと reading.
The villagers are all old people.
That line is kinda like something a villager would say in a fantasy game, isn't it?
Pessimists say, "the glass is half empty," but the villager surprised me by shouting "Refill!"