Does the Koran specifically state that anyone not a Muslim is an "infidel" and should be killed?

I have been told that the Koran quite specifically says if you're not a Muslim -- or not a "good" Muslim, that's to say following ALL aspects of the Koran to the letter (no interpretation allowed!) -- then you're an "infidel" and all infidels must either convert to "the one true... show more I have been told that the Koran quite specifically says if you're not a Muslim -- or not a "good" Muslim, that's to say following ALL aspects of the Koran to the letter (no interpretation allowed!) -- then you're an "infidel" and all infidels must either convert to "the one true religion" or die.
I find this hard to believe -- which is why I'm seriously asking this here.
Is there such a thing as a moderate Muslim, who allows for the coexistence of other religious beliefs or is everyone meant to convert?
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