Meng Hao was no longer a novice in the Cultivation world. He now understood a lot more about the Dao Children and Chosen of the Sects and Clans. Although his understanding wasn't absolutely correct in terms of every single detail, he now had a general understanding of what a Dao Child was and what a Chosen was.
Actually, 'Dao Child' and 'Chosen' were merely titles, an indication of approval and status. Such approval was evidence of that person's ability to maintain their strength within the Sect. It was also proof to the outside world as to the future good prospects of the Sect itself.
If a Sect had many Chosen, it would be possible to predict that it would experience incredible growth in the future.
Regarding Dao Children, that was a title given to the most illustrious of any given stage of Cultivation within a Sect or Clan. They would represent the Sect or Clan when it came to dealing with most affairs on the outside.