The meat of that quote is this "obedience to the laws and ordinances of the Gospel".
What are those laws and ordinances? It is Faith in Jesus Christ unto a repentance of sins, then baptism, the Holy Ghost and being faithful unto Jesus Christ until the end.
And yes Mormons, emphasize that "Faith" in Jesus Christ is a verb and requires action on our part with heavy doses of mercy from God. While at the same time, we should always be humble and acknowledge that our strength and support comes from above.
Respectfully, I disagree on what you consider the meat of the quote. I see the meat as:
"just that forgiveness for them should be CONDITIONED ON INDIVIDUAL COMPLIANCE "
If our individual forgiveness is conditioned upon our own compliance, then we would all fail miserably in the eyes of God.
Jesus Christ on the cross made our salvation unconditional by the Grace of God, with the only condition that we accept that gift and that Grace. (I recommend reading some of Romans, it really touches upon this whole topic).