Question

Who is Reagan referring to when he says those who “live in . . . totalitarian darkness”?

People who ignore threats from the Soviet Union
People who lead revolutions against communist governments
People who do not enjoy the freedom of a democratic society
People who advocated for the continuation of communist governments

Answer 1

To make it more clear the correct answer is the 3rd one...

people who do not enjoy the freedom of a democratic society

Hope this helps! <3

Answer 2

I believe he is  referring to people who do not live in a democratic society, for public consumption but really he only means people who live in a communist society because he does not attack the dictators of countries like Nicaragua of Somoza who had a dynasty and no democracy for the vast majority of poor people, and who only defended the privileges of the rich people. What I think he really means is that as long as there is a democracy for the rich people ie that serves their interests then that is okay. Even our western democracies like in Canada and the US are far from perfect like in the internment of the Japanese in WW II, the Klu Klux Klan killings of black Americans in the 60's, the residential school treatment of the First Nations in Canada and the un penalized killing of about 1000 workers per year in Canada due to poor safety conditions are some of the many examples of the shortcomings of our much touted democracy.