How can the verse be interpreted: "So whoever transgresses against you, then transgress against him to the same extent that he transgressed against you" (Al-Baqarah: 194); and what is the compatibility between it and the verses of forgiveness?

Retaliation in kind for an assault is conditional upon the fact that what was intrinsically forbidden, such as sorcery, adultery, intoxicants, and betrayal, cannot be retaliated against in kind, because that constitutes an assault on the rights of Allah. In such cases, it suffices to impose the prescribed punishment (حد) or a discretionary punishment (تعزير). There is no contradiction between the permissibility of retribution (qisas) and the desirability of forgiveness. The wronged party is permitted to seek justice, but forgiveness is better and carries greater reward.