Ramana Maharshi was taking about the dream and waking states.
"Let us say that tonight when we go to sleep we are chased by a dream tiger. In spite of all our study and analysis of the waking and dream state, we will run for our life. Why? Because the knowledge that it is only a dream will not be available to us during the dream. If we knew the 'I' was but a dream, we could stand still and allow the dream tiger to attack our dream body. What would we lose if our dream body is killed or mutilated?"
Ramesh Balsekar points out that we wake up from the personal dream into the waking dream. And the sage, he has woken up from the waking dream.