Frodo is a state agent. The Shire is neutral(?) in the War of the Ring, but he is acting as a foreign fighter for fantasy NATO. Gandalf is a military advisor from the superpower Valinor and many of the other people Frodo works with are diplomatic agents of their peoples or outright heads of state.'Terrorists' like Frodo, Luke Skywalker, the French Resistance, or other WWII partisans?
Luke is a uniformed soldier in a civil war (not that it would stop the empire from calling him a terrorist).