Accepting that "caucasian" does have an original, valid meaning: It does indeed - inhabitants of a bunch of small countries in tne Caucasus range of mountains.
It should be kept to that context and not extended to mean "white people", or people of exclusively native European ancestry" or whatever it is intended to denote by those strange people who use the term.
"...5 racial groups. I forget the exact names, but Caucasian, Oriental and Hispanic were three of them." That's really daft - Hispanic is a linguistic term, meaning people who speak Spanish, or by extension come from countries or communities where people speak Spanish. Which means they can be Black, White, any shade of brown, African, European, Asian, American, or any combination of the above.