The section begins with a verse that contradicts itself.
Nothing of our revelation (even a single verse) do we abrogate or cause be forgotten, but we bring (in place) one better or the like thereof. 2:106
Nothing in the Quran, not a singe verse, is wrong -- except for the verses that are wrong, that is. And Allah will replace them later with better verses.
There is some disagreement among Muslims about this abrogation thing. Did Allah fix earlier messed up verses in the Quran with better ones later on? Or is every verse in the Quran correct as is?
They all seem to agree, though, that when it comes to the Quran, later is better. Allah may have made some mistakes when he revealed the Quran to Muhammad, but if so, he corrected them as he went along. Allah is wise, all-knowing, careful.
Next Allah tells us a few things about the people of the Scriptures. The Jews and Christians know damn well that the Muslims are right, so they try to make Muslims disbelievers because they envy the truth that they know the Muslims have.
Many of the people of the Scripture long to make you disbelievers after your belief, through envy on their own account, after the truth hath become manifest unto them. 2:109a
Well, Allah says that's fine. Play nice with them until Allah tells you to get nasty.
Forgive and be indulgent (toward them) until Allah give command. 2:109b
But when they say that you must be a Christian or a Jew to go to heaven, ask them to prove it (and hope they don't ask you the same thing when you tell them that they must be Muslim to go to heaven).
They say: None entereth paradise unless he be a Jew or a Christian. ...
Say: Bring your proof (of what ye state) if ye are truthful. 2:111
Beyond that, don't worry about it. Allah will make their lives miserable in this world and torture them forever after they die.
Theirs in the world is ignominy and theirs in the Hereafter is an awful doom. 2:114
And pay no attention to the know-nothings that ask Allah for a sign. (Or ask him to say something good, kind, decent, or reasonable in the Quran.)
And those who have no knowledge say: Why doth not Allah speak unto us, or some sign come unto us? 2:118a
Their hearts are all alike (they suck). Allah's revelations are clear to those that already believe that Allah's revelations are clear.
Their hearts are all alike. We have made clear the revelations for people who are sure. 2:118b
Allah will take care of the disbelievers later (by burning them forever in the Fire).
As for him who disbelieveth, I shall leave him in contentment for a while, then I shall compel him to the doom of Fire - a hapless journey's end! 2:126
Meanwhile, remember that Muslims are colored by God. And who is better at coloring than Allah?
(We take our) colour from Allah, and who is better than Allah at colouring. 2:138
I give up. Who is better than Allah at coloring?