On closer scrutiny of the above-recorded hadith, anyone proficient in the sciences of the Hadith would immediately see the fallacy of such a claim when the text and chain of transmission of the hadith is studied. Of course as a Christian, you wouldn't be familiar with this concept.
Firstly, the person who uttered the above words was not Muhammad (as) himself, but by one of his Companions by name of ‘Amru bin Maimun.
The hadith is categorized as mauquf (lit. “stopped”), meaning that it is a saying traced to that of a Companion(R). Therefore, since it is clear that this hadith is not a saying of the Prophet, much less ascribed to him, it cannot be a basis for a ruling in Islam.
Secondly, the key phrase in the above hadith is “During the pre-lslamic period of ignorance”, which the critics had obviously overlooked. While we concede that above hadith is indeed accepted as authentic, we would also argue that according to the principles of criticism of the hadith, the chain of narration of the hadith above would be rejected even if it had been ascribed to the Prophet. We take the chain of narration seriously and any serious gaps or omissions render the hadith incomplete or weak, so ww dismiss it.
Here are the guidelines to determine whether a hadith is accepted. This is a simplified version for your nuggety noggin.
(1) The Hadith should not be contrary to the text or the teaching of the Qur’an or the accepted basic principles of Islam.
(2) The Hadith should not be against the dictations of reason or laws of nature and common experience.
(3) The Hadith should not be contrary to the Traditions which have already been accepted by authorities as reliable and authentic by applying all principles.
(4) The Hadith which sings the praises and excellence of any tribe, place or persons should be generally rejected
(5) The Hadith that contains the dates and minute details of the future events should be rejected.
(6) The Hadith that contains some remarks of the Prophet which are not in keeping with the Islamic belief of Prophethood and the position of the Holy Prophet or such expressions as may not be suitable to him, should be rejected.