Expressing $n(\tilde{\vec{r}})$ in a Taylor series, $\epsilon_{\text{xc}}$ can be thought of as a function of coefficients, which correspond to the respective terms of the expansion.
Neglecting all terms of order $\mathcal{O}(\nabla n(\vec{r}))$ results in the functional equal to LDA, which requires the function of variable $n$.
Including the next element of the Taylor series introduces the gradient correction to the functional, which requires the function of variables $n$ and $|\nabla n|$.
Expressing $n(\tilde{\vec{r}})$ in a Taylor series, $\epsilon_{\text{xc}}$ can be thought of as a function of coefficients, which correspond to the respective terms of the expansion.
Neglecting all terms of order $\mathcal{O}(\nabla n(\vec{r}))$ results in the functional equal to LDA, which requires the function of variable $n$.
Including the next element of the Taylor series introduces the gradient correction to the functional, which requires the function of variables $n$ and $|\nabla n|$.