This quote is from Aziz and Mr. Fielding’s first meeting and it starts with a sort of misunderstanding, where Fielding is referring to art and Aziz thinks he is making fun of his knowledge of the Western culture. The quote has a lot of foreshadowing for other misunderstandings that happen during the men’s friendship thus far in the novel (and those that are surely to be throughout the rest of it as well). It refers to Aziz having a good intuition but often using it to draw conclusions that are not necessarily true. It is important to establishing Aziz’s character because it shows the way his overactive imagination can cause him to misunderstand situations. Also it demonstrates how while he finds meaning, it is not always correct, and that could lead to more misunderstandings throughout the novel.