Do I need to disclose cracks in foundation walls if a structural engineer's report states that there's nothing wrong and house is structurally fine?
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Yes, you would have to disclose the cracks, though you also could--and should--disclose (and provide a copy of, upon request; or possibly even attack to the disclosure form) a copy of the engineer's report. Even given the engineer's report, the presence of foundation cracks is a material condition of which you are aware; that's why you need to disclose it, though disclosing the extenuating report is appropriate and prudent.
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