TRANSLATION

Suta Gosvami said: Thus the sage among the gods [Narada], comfortably seated and apparently smiling, addressed the rsi amongst the brahmanas [Vedavyasa].

Narada was smiling because he well knew the great sage Vedavyasa and the cause of his disappointment. As he will explain gradually, Vyasadeva's disappointment was due to insufficiency in presenting the science of devotional service. Narada knew the defect, and it was confirmed by the position of Vyasa.