With the RDAC XB or XD, the Reference Ground wire is the Black Ground wire that comes out the top of the RDAC, together with the Red Power Supply Wire. This wire should go straight to the Engine Block.
Note: It is acceptable to Setup a Ground Bus on the Firewall where all of your senders that require an Engine Block Ground are Grounded. This Bus should be wired to the Engine Block with very heavy gauge wire, and you can then use it for Grounding your RDAC Ref Ground and all sender Grounds that do not Ground through the Block itself, as in this example:
Important: Read this article on why an Engine Block Reference Ground is critical for accurate engine sender readings. If your oil temp, oil pressure and RPM / tach engine senders are not reading correctly, this is the first thing to check.