A World War II drama that critics say glorifies Serbian nationalist groups has sparked outrage at the Sarajevo Film Festival, with organizers under fire for allowing excerpts of the forthcoming film to screen and the mayor of Sarajevo demanding resignations in the ensuing dust-up. On Wednesday, the Sarajevo fest fought back, insisting that it was caught off-guard by the film’s inclusion at an industry event on Tuesday. “Heroes of Halyard,” from Serbian actor and director Rados Bajic, is set in a remote Serbian village in the spring of 1944 and tells the story of a family torn apart by competing...