This is where the Wart is talking to Mr. P. He's describing to him that Might is Right and that you can't always rely on your brain.
Here is the jousting scene between Sir Grummore Grummurson and King Pellinore. This is portrayed by the knights being really clumsy and failing at being the ideal knight. The Wart learned here that the people we look up to aren't always as great as they seem.
In this scene, Wart and Lyo-Lyok are speaking about the social behavior of their original species. Lyo-Lyok is shocked to learn that humans fight each other. As on page 170, Lyo-Lyok states, "But what creature could be so low as to go about in bands, to murder others of its own blood?"