What is the interpretation of the noble verse from Surat Al-Ma'idah: {Know that Allah is severe in punishment and that Allah is Forgiving and Merciful}?

This verse combines the styles of encouragement (targhib) and deterrence (tarhib), both of which are methods used by the Quran to guide people towards good and warn them against evil. Allah is severe in punishment for those who violate His sacred limits and do not repent, and He is Forgiving and Merciful to those who repent and turn back to Him. Abu Bakr As-Siddiq mentioned that Allah mentions a verse of ease during hardship, and a verse of hardship during ease, so that the believer is both hopeful and fearful (raghiban rahiban), neither wishing upon Allah other than the truth nor casting himself into destruction.