I would say the first one. Range in this context means the area which they live, travel, eat, sleep and in general live their lives. The second meaning of range (especially hit) is usually talking about shooting someone with a gun. On TV you will hear the expression “the target is within range” often. This means they are within the guns shooting ability.

Sabrina is right. The author means territory, living area, living space.

I'm going to play "devils advocate" here (meaning I'm going to take the opposite point of view! Here, the article talks about Hyenas possibly being in a city, not out in their natural habitat. Having stated that they are dangerous, I would understand this as saying they might attack anything (and everything) they see within their attackable distance (range). Isn't English fun? :)