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Read our Farewell Blog Post for more details.
If you've already installed Reaction, then the Standalone is the correct choice.
Also note that you may have to update your Gantry versions as well if you switch template to a later version.
BUNDLE
This is the bundled template package for XXX that you install into Joomla - Admin → Extensions → Install/Uninstall. It contains both the template and the Gantry library.
Do NOT use this package if the Gantry library has already been installed, either through a bundle package, or through a standalone Gantry install.
STANDALONE
This is the standalone template package for XXX that you install into Joomla - Admin → Extensions → Install/Uninstall. It contains just the template.
Use this package if Gantry has already been installed, whether by a previous bundle install or separate independent Gantry install. Gantry is required for the template to work.