What is the authenticity of the saying: "On the Day of Judgment, Allah will have mercy on people—a mercy for which Iblis would yearn"?

This statement is part of a Hadith (definition) narrated by Al-Tabarani from Abu Hurairah with a similar wording, in which he mentions the wicked and the foolish entering Paradise, and the one whom the Fire touched due to his sin entering it, and a forgiveness that Iblis himself would long for. Ibn Kathir described the Hadith as "very strange." Regardless of the authenticity of the Hadith, the texts of revelation confirm the vastness of Allah's mercy and the greatness of His forgiveness, as Allah Almighty says: "And My mercy encompasses all things."