There's a wide variety of different races in this city.
I don't really like racial jokes.
My father is a racist and yet he tells me that it’s wrong to judge people based on their race.
A kind or type of person is when you categorize a person into different types. How do we do that? Well, you categorize by race of people (or more simply by race).
This is a jukugo word, which usually means on'yomi readings from the kanji. If you know the readings of your kanji you'll know how to read this as well.