______ and ______ are moral virtues that represent means, the former a mean between the vices of cowardliness and foolhardiness in our attitude toward things terrifying, the latter between licentiousness and insensibility in our attitude toward bodily pleasure.

The clause beginning with “former” provides clue for the first blank and beginning with “latter” for the second blank. The blanks would be replaced by words that characterize the mean of the two qualities respectively. “Cowardliness” and “foolhardiness” (bold or daring in a foolish way) are the attributes of courage (terrifying things also provides the clue); and the mean of “licentiousness” (morally unrestrained, esp. in sexually activity) and “insensibility” (indifference) would be “temperance” (moderation). Hence, (3) is the answer.