The same verse is in another Surah, read the context of that Verse And if only the People of the Scripture had believed and feared Allah , We would have removed from them their misdeeds and admitted them to Gardens of Pleasure., Verse 69
start from verse 65 to get the exact Idea
and also read the ayat carefully in the beginning, it says: (61) Lo! Those who believe (
in that which is revealed unto thee, Muhammad SAW), and those who are Jews, and Christians, and Sabians - whoever believeth in Allah and the Last Day and doeth right - surely their reward is with their Lord, and there shall no fear come upon them neither shall they grieve. Allah SWT adds Islam to the statement to clear any misunderstandings