Which grammar is correct to ask?
Which people was Utah named for?
Or is it this...
Which peoples was Utah named for?
The answer being "Utes", is it correct to use "people" or "peoples" here in this example?
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Both versions are possible, depending on the intent of the question.
From the Merriam-Webster definition of people, we see peoples:
5 plural peoples : a body of persons that are united by a common culture, tradition, or sense of kinship, that typically have common language, institutions, and beliefs, and that often constitute a politically organized group
Since the answer is Utes, the more correct question in this case, especially if you were expecting the answer to be a cultural group, is the one that uses peoples.