It can't possible be Jiayra can it?

This is the conversation:

Perhaps you can fight him evenly, but I cannot. He's too strong.
- Shark guy.
Yes if we both fought him, we would both be killed. Or in a good case, we might kill him, but we'd die along with him. Even if we had more men, that result would not change.
- Itachi.
HIS caretaker is a legendary Sannin.
- Shark guy.

Ok Kisame or the shark guy said "His caretaker is a legendary Sannin." That means "HIM" the guy they were talking about is not the legendary sannin. Are they talking about Naruto?? Or are they talking about Naruto's kyuubi, are they afraid if they try to kill Naruto that they would be overpowered by the fox demon?

Or is it just a mistranslation and they meant Jiarya all along?

But if Itachi is afraid of Jiyara, how come Orochimaru is afraid of Itachi? Orochimaru admintted Itachi is stronger than he is. And Orochimaru has to be on similar ground with Jiayra, or they wouldn't be called legendary three (if one was way above another). I'd understand if Orochimaru is slightly weaker than Itachi, who in turn is slightly weaker than Jaiyra, but if that were the case, than Itachi would only have to bring a few more men to defeat Jaiyra, but like they said, "the result would not change"

So I'm confused