I means, " understand what they are speaking to me or to other people.
Hi Shaly,
I do not know your experience with English; however, I would like to suggest that listening is a process of learning little by little. You may have to practice a lot before you can listen or speak to English-speaking people. You can find that speaking to local people who speak English is easy but listening to foreigners is harder as they speak fast and have a peculiar pronunciation. You need to learn to listen to them first by listening a lot to cassette with a textbook or listen to an English-speaking radio like LoveFM or watching an English-speaking TV like BBC or CNN or others more that you like.
Just some ideas

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