They ask you about fighting in the prohibited months; you say: “Fighting in it is a grievous offense, and preventing from Lord Allah’s way and hiding It, and preventing from the Sacred Masjid and expelling His people out of it is even more grieve offense near Allah, and sedition is more offense than killing”. They will never stop fighting until they turn you back from your way of life if they can, and anyone from you turns back from his way of life and dies as a disbeliever, then they made their deeds futile in this world as well as in the Hereafter, and those are the inmate of Fire; they shall remain in it forever.
Messenger Muhammad appointed eight men near Naqla valley which is between Taif and Mecca for observing the movements of Meccan pagans. Upon seeing a group of traders from the enemy clan returning to Mecca, the eight men attacked and seized the group considering safety measures. This event happened during the sixth month of the Hijra Calendar. But the Meccan pagans and Jews started to spread rumors that the Messenger and followers fought during the seventh month of Hijra which is declared as one of the prohibited months for fighting. Thus, the Lord revealed this verse encouraging the believers for fighting against the disbelievers.
As there is no group of believers anywhere in the world, the odd believers are commanded to follow a lifestyle explained in verses 7: 205-206. See explanation 2: 121; 6: 89-90 and 9: 31.