This is the 5669th most frequent Spanish word.
realidad
Reality; the state or quality of being real or actual.
Here, 'realidad' is used to refer to the state of things as they exist, the actual situation.
La realidad fue completamente diferente a lo esperado.
The reality was completely different from what was expected.
In this usage, 'realidad' is part of the phrase 'en realidad', which is an expression meaning 'actually' or 'in truth'.
En realidad, nunca quise ofenderte con mis palabras.
In reality, I never intended to offend you with my words.
Here, 'realidad' refers to the concept of existence outside of imaginations or dreams.