Yes this is an exact quote taken from Reila's book. Rolls's wife's comment is also a direct quote.
Also, I tried to make it clear on the post that Helio loved Rolls very much and that this quote was an outburst of jealousy and bitterness. Yes, he was bitter about the fact that Rorion constantly lost to Rolls. The Gracies were very competitive in-family relation, and vanity is a family trait. Any recent Royce or Helio interview always show a little bit of vanity, that extra effort to make them seem great. Although it is true, it is human and it does not obfuscate their very great accomplishments for martial arts. Helio wanted Rorion to be the family champion. But despite the fact that he was a brilliant guy, and a charismatic leader, hhis skill on the mat was not nearly on the same level as that of some of the other family members. And that disappointed Helio deeply. The fact that Rolls was so much better than Rorion got to him, as I assume it would peeve any father.
The Helio quote was an unfortunate outburst, like I said, and he regretted it instantly. We can assume that him being Rolls's surrogate father, he must have been dealing with a lot of emotions at the time, like everyone else.
Reiterating: Direct quote from Reila's biography of Carlos, I believe she and Mauricio Gomes, as well as Margarida, witnessed the exchange. As for her trying to put down Helio's legacy, I doubt it. Simply because the dirt she pulled on her father was ten times more damaging, if one were looking for something to hate on.
To give you an idea... Carlos convinced his best friend and longtime business associate Oscar Santa Maria that he (Carlos) channelled a Peruvian spirit who gave him advice, and that spirit told Carlos to have a baby with his friend's wife. He convinced his friend to allow it and impregnated her.
The baby, Carlos Gracie Jr., was born in Peru. The friends kept on being friends. Reila told this, and a lot more stuff that made Gracies, from both sides of the family, shuffle in their chairs with looks of " oh no she didnt" stamped on their faces.
The truth is that the one who taught Jiu-Jitsu to Rolls was not Carlos but Helio. So I don't see why Helio instead of being proud would be jealous about Rolls skills, if he was the best representative of Helio's own style and techniques. If one of Helio's son would write a book they will be telling a different story, so I guess at the end you choose who to believe, if you believe what Reila say on her book that's fine.
On the other hand, I don't know why Reila would write this about Helio, she should be thankful because her husband, a black belt under Rolls and even her own son, Roger, both have Helio's style and philosophy of Jiu-Jitsu: basics, close guard, choke from mount kind of stuff. Nobody in Gracie Barra fights like this, Roger's Jiu-Jitsu is Helio's Jiu-Jitsu.