Real art is basic emotion. If a scene is handled with simplicity - and I don't mean simple - it'll be good, and the public will know it.

This quote is referring to creating art (e.g. music, movies, paintings, etc). It suggests that something very simple, yet conveying real emotion, is better than something complex without emotion. The speaker believes that if something is simple but conveys strong emotions, the public will recognise and appreciate it.