In the landmark case of Employer Division v. Smith (1990), the Supreme Court addressed a critical question regarding the interpretation of the Free Exercise Clause of the First Amendment. The case involved two Native Americans who were fired from their jobs for using peyote, a hallucinogenic drug, during a religious ceremony. They subsequently sought unemployment benefits, arguing that their dismissal violated their right to free exercise of religion. The Supreme Court's ruling established a significant precedent regarding the limits of religious freedom, particularly in relation to generally applicable laws. Based on this case and its implications, which of the following statements accurately reflects the Supreme Court's decision and its broader context?