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I.e., into thinking that in spite of their numerical weakness and lack of arms, they could withstand the powerful Meccan army. The term din, often denoting "religion", obviously stands here for the attitude one has towards his religion: in another word, one's faith. "Those in whose hearts was disease" is a reference to the vacillating and faint-hearted among the Prophet's followers, who were afraid of meeting the Quraysh in battle. - The particle idh which introduces this sentence has often the meaning of "when"; in this case, however, it signifies "at the same time".
Cf. ii. 10 "disease in the heart." Trust in Allah brings its own reward: our eyes are opened, and we see how great, good, and wise is the Cherisher of the Worlds. Others may sneer and despise. But the blessing of Allah keeps our minds fresh and our hearts contented.