The phrase "we can do this the easy way or the hard way" means there are two options for accomplishing something: one is simpler and less difficult (the easy way), and the other is more challenging and unpleasant (the hard way). The choice is offered to decide whether to proceed cooperatively and smoothly or resist and face greater difficulty or consequences. This phrase is often used to highlight that choosing the easier route avoids unnecessary struggle or hardship.
It is also a recognizable line from popular culture, notably from "The Boondocks" where the character The Booty Warrior uses the phrase to present a choice often implying consequences depending on how the situation is handled.
In summary, the phrase suggests a choice between an easier approach or a tougher, more difficult experience, often with the implication that the harder way is a result of one's own decisions or lack of cooperation.