"The nation died...
"The nation died, that is, they were disgraced and overcame by their enemies and remained in that condition. Afterwards, Allah again gave them life, by inspiring them to rise against their oppressors and to defend their rights. So, they stood up and drove their oppressors out and became independent. Those were the people to whom Allah gave life a second time, although so far as their identity was concerned, they were not the same people who had died the death of disgrace.
But as both groups were of the same nation, Allah counted them as one people who first died and then were raised to life again. Allah has used similar expressions in various places in the Qur'an. For example, He says, addressing the Jews of the Prophet's time: And We delivered you from Pharaoh's people who subjected you to severe torment .. . (7:141). Then We raised you up after your death that you may give thanks (2:56).
"Lastly, if this verse were not taken as a parable, it would have no connection with the verses following it, which are about fighting in the way of Allah." This interpretation is based on some patently false premises: First: It is based on the rejection of miracles, or at least some miracles, like giving life to the dead. But we have proved the existence of miracles.
Moreover, here we are dealing with the Qur'an, and the Qur'an loudly declares the existence of miracles, like raising the dead, etc. Even if we fail to prove such miracles through intellectual reasoning, the irrefutable fact remains that the Qur'an believes in them. Second: It claims that the Qur'an proves the impossibility of more than one life in this world.
But the verses describing the raising of dead (in the stories of Ibrahim, Musa, 'Isa and 'Uzayr) clearly and definitely prove that dead animals and persons were again raised to life in this world. Moreover, a life in this world is not to be counted as two lives simply because a death intervenes in between. The story of 'Uzayr is clear on this point: He remained dead for a hundred years; but on raising again he was not even aware of that death.
Third: It is a false assumption that the Qur'an ought to have identified the nation or the prophet concerned, if it were the narration of a real event. The style of speech differs according to its time, place and context. Sometimes details are given; on other occasions only a passing reference is made.