Suggested highlights (see the "How to Outline a Passage" video for more info on highlighting):

P1 — We must first make a distinction between literature and literary study.
P2 — The student must translate the experience of literature into intellectual terms,
P3 — One answer has been: It can be done with the methods developed by the natural sciences,
P4 — But patently the other solution commends itself: Literary scholarship has its own valid methods,
P5 — there is this difference between the methods and aims of the natural sciences and the humanities.

(Please also note: it's not important that your highlighting matches mine exactly! There may be multiple good things to highlight in one paragraph. Your goal should be to mostly highlight similar points to the ones I show here even if they're not the exact same ones.)