Don't worry! I have never really understood exactly what torque is, let alone how you measure it!
To put it as simply as I can.
Before engines were invented everything was measured in horsepower (or manpower). If you had one horse you had one horsepower. Some horses were bigger and stronger than others but lets not get hung up on that.
When steam engines were invented the torque they produced was measured by seeing how much weight could be lifted at the end of a bar a foot long, that is why torque is expressed as lbs/ft.
But then as now no one could understand what that really meant, they understood horses thus the formula
lbs/ft of torque x rpm where the torque is produced = BHP
5252
(5252 is a constant that applies to all engines)
So to apply that to the 1.4 TSi and calculate the bhp produced at 3500 rpm where 184 lbs/ft of torque is produced
184 x 3500 = 122.6 bhp
5252
From that calc we can see that the new 1.4 TSi actually has the same bhp at 3500 rpm as the old 1.4 TSi had at peak rpm, that is why it feels and is so quick.
Since both the 1.4TSi and 1.8TSi have exactly the same max torque up to 3500 rpm they both produce exactly the same bhp. Only above 3500 rpm does the 1.8 TSi have an advantage, by 4000 rpm the 1.8 TSi is producing 140 bhp which is the same as the 1.4 TSi produces at its peak.