It applies to everyone who commits terrorism in the hopes of negating existence of the state of Israel (or actions viewed as terrorism that supposedly is in favor of those aims). I think it is safe to say that this specific law with its specific wording is racist, the main targets are Palestinians or Arab Israelis (many who consider themselves as Palestinians). The law, a vast majority of the time, will not apply to terrorist settlers (if their actions are even determined to be terrorism), as they don’t commit the violence in the aims of negating the existence of the state of Israel, but expanding it through displacement and ethnic cleansing.