Dispel evil with what is good. We know well what they attribute (to Us).
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Tafseer
'Abdullāh Ibn 'Abbās / Muḥammad al-Fīrūzabādī
تفسير : (repel evil with that which is better) repel by means of "there is no god except allah" the expression of idolatry which is coming from abu jahl and his host; and it is also said that this means: repel from yourself their indecent talk through the greeting of peace. (we are best aware of that which they allege) of lies.
Jalāl al-Dīn al-Maḥallī
تفسير : ward off with that which is better, that is to say, with the [better] trait of pardoning and shunning them, the evil [act], the hurt they cause you — this was [revealed] before the command to fight [them]. we know best what they allege, [what] they invent of lies and [what they] say and so we will requite them for it.