The 'believes-true S' schema inherits the inscrutability of reference problem: Quine's arguments show no fact of the matter determines which sentence S correctly captures the content of a belief state.

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Content of a belief state(what determines which sentence correctly captures what someone believes): What a belief is actually about—the specific proposition or idea that someone believes to be true.
Fact of the matter(whether there is a definitive fact determining correct interpretation): An objective truth that exists independently—something that is actually the case, rather than a matter of opinion or interpretation.
Inscrutability of reference(the core problem being inherited by the 'believes-true S' schema): Quine's idea that we can never definitively pin down what a word or sentence truly refers to or means, because multiple different interpretations could all fit the same observations.
Quine(as a proper name referring to the philosopher whose theory is being discussed): Willard Van Orman Quine was a 20th-century American philosopher who wrote about how we know things and how language works. In this statement, we're discussing one of his specific ideas about observation.

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