They are the nation that was created by God through Abraham in Geneses 12 onwards to be custodians of his covenants and to represent his heavenly kingdom in the earth. You may see by scripture that they failed miserably to do this on many occasions and God had to release judgement on them. God has not forgotten Israel and has many unfulfilled promises yet to fulfil that he promised to some of his servants especially David. The thing that makes Israel special is the COVENANTS they hold with God and god is a Covenant keeping God. But bear this in mind that through the ACT of his Son JESUS the CHRIST he is now in covenant with the whole world to bring salvation and restoration. Psams 2:8 is a messianic psalm and a powerful covenant.