Picasso probably meant this: Create a work that is indistinguishable from reality. In other words, when you look at your work, you experience the same emotions. Let the real work evoke similar thoughts and feelings in people. A great artist is one who replicates reality.
Originality and creativity are crucial when creating a work. If you stand out from the crowd, you can be a great artist.
In some way I get it, though not replication. To feel the emotions through unreal pathways might be a good descriptor of art though.