Rather, what we do is invite people to Islam and encourage them to embrace it. We strive in Allah’s cause against those who deny the faith so that Islam may spread, so that anyone who wishes to submit can find the opportunity, and so that the enemies of Allah may be restrained. Guidance itself, however, is in Allah’s hand alone; no one is compelled to believe or to enter Islam—this is a matter that concerns each individual personally.
The Most High then says, “The right way has become distinct from error.” Islam—praise be to Allah—contains nothing repugnant; all of it is praiseworthy and desirable. Disbelief and polytheism, on the other hand, are pure evil and detested in their entirety. Thus truth has been set apart from falsehood: rectitude, which is the truth, stands apart from misguidance, which is falsehood. A human being possesses reason and the ability to think, weighing truth against falsehood; if his thinking is sound and free of whim or ulterior motives, that sound reasoning will lead him to embrace the truth without any coercion. This is one interpretation of the verse.
The second opinion is that the verse was revealed concerning the People of the Book: they are not forced to accept Islam. If they choose to remain on their own religion, they may do so provided they pay the jizya to the Muslims in a state of submission. As for other unbelievers, nothing is accepted from them except Islam or warfare, for they have no legitimate religion, and idolatry is a false creed.