This verse is evidence which demonstrates the calling of others to Allah (swt) and to the fundamentals of the Islamic Law. In it, Allah (swt) explains that while calling people to Allah (swt), there must be no quarrelling, arguing, forcing, using of obscene words and insulting. As such, He says: 

(… وَلَا تَسُبُّوا الَّذِينَ يَدْعُونَ مِن دُونِ اللَّهِ) (And do not insult those they invoke other than Allah,…): Why? It is so that they do not go too far and insult Allah (swt):

 (… فَيَسُبُّوا اللَّهَ عَدْوًا بِغَيْرِ عِلْمٍ ۗ… ) (…lest they insult Allah in enmity without knowledge.…): This is because, since they have associated others with Allah in worship, you must present advice in an acceptable manner for them, in order to change the norms that they are used to. Therefore, dialogue is necessary. As for insulting, forcing, using power, violence and enmity; these are not the correct way. Therefore, we say that Islam is not a religion of violence, but a religion of gentleness. All the accusations that have been hurled at our religion, Islam, are false. Allah (swt) has explained clearly that the way of calling others to the religion is: 

 ادْعُ إِلِى سَبِيلِ رَبِّكَ بِالْحِكْمَةِ وَالْمَوْعِظَةِ الْحَسَنَةِ وَجَادِلْهُم بِالَّتِي هِيَ أَحْسَنُ

(Invite to the Way of your Lord with wisdom and kind advice, and only debate with them in the best manner) (An-Nahl: 125)

We are to debate with them in the best manner, and not in the worst manner, even if they were to curse and insult.

(… كَذَٰلِكَ زَيَّنَّا لِكُلِّ أُمَّةٍ عَمَلَهُمْ… ) (…Thus We have made pleasing to every community their deeds.…): “Made pleasing” means ‘presenting something beautifully in order to attract and captivate’. Allah (swt) has said:

 إِنَّا جَعَلْنَا مَا عَلَى الْأَرْضِ زِينَةً لَّهَا لِنَبْلُوَهُمْ أَيُّهُمْ أَحْسَنُ عَمَلًا

(We have indeed made whatever is on earth as an adornment for it, in order to test which of them is best in deeds) (Al-Kahf: 7)

With respect to the ummah of Prophet Muhammad Bin Abdullah (saws), the way of gaining appeal for the religion and making good deeds appealing, is through factual and scientific discussions. It should not be through engaging in disputes or insulting people, even if we know that we are the ones who are upon the truth, so that they do not exceed their limits in their discussion with us, as Allah (swt) has explained.

(  ثُمَّ إِلَىٰ رَبِّهِم مَّرْجِعُهُمْ فَيُنَبِّئُهُم بِمَا كَانُوا يَعْمَلُونَ … ) (…Then to their Lord is their return, and He will inform them about what they used to do.): They will be going back to Allah (swt) and He will inform them of this when the Books of Deeds are distributed, and He will reckon people based on their beliefs. Therefore, according to this verse, all claims that Islam cancels and disregards others are false.