Can you explain the meaning of verse 3:07 of the Quran?

Acid2

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He it is Who has sent down to thee the Book: In it are verses basic or fundamental (of established meaning); they are the foundation of the Book: others are allegorical. But those in whose hearts is perversity follow the part thereof that is allegorical, seeking discord, and searching for its hidden meanings, but no one knows its hidden meanings except Allah. - Qur'an 3.7

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Is this verse saying/confirming that stories like that of Noah's ark or of the prophet that lived in the belly of a whale (Jacob?) only allegorical and no such incidents ever happen? After reading this verse, how do Muslims know which verse to take literally and which not to?

And, what is the point of sending a book for humanity to read if the true meaning of it can't ever be known?
 
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