The statement "People were racist and prejudiced because the newcomers were different in some ways" can be context-dependent. It suggests that differences between groups can lead to racism and prejudice, which is often true, as fear of the unknown and stereotypes can contribute to biased attitudes. However, labeling all such attitudes as universally true would overlook more complex social, historical, and individual factors.
Therefore, in a general context, one might argue that the statement is true concerning the psychology of prejudice, but it could also be seen as an oversimplification. If forced to select "true" or "false" based on the complexities of human behavior and social interactions, one might lean towards "true" for the purposes of understanding the basis of racism and prejudice.
So the answer is: true (keeping in mind the nuance involved).