The Israelite as the Chosen People of God
God - be glorified - guides anyone He pleases to guide: being a good-doer and kind-hearted, and He misguides anyone whom He likes to misguide: being a wrong-doer, a transgressor and wicked.
Therefore, He guided the Children of Israel in the past: to be His devoted servants: to worship Him alone without associating anyone else with Him, and He made covenants with them: to be with them as long as they are with Him.
This is the meaning of the Chosen People of God: and He preferred them to other peoples in the past with much blessing, as long as they were with Him.
But they broke their covenants with Him and worshiped the idols and the stars of the sky.
So He sent them many messengers to warn them of the idolatry, but they disobeyed and insisted on their wrong-doing and idolatry.
Then He sent them Jesus Christ: an angel that came down from heaven and entered the fetus in the womb of Virgin Mary.. but they disobeyed him in spite of that he invited them to t
he First Commandment in the first place.
Therefore, God discarded the Children of Israel, and they are no longer His chosen people.
The early Christians as the Chosen People of God
And then God chose Jesus Christ, his mother and the disciple and people who followed them in the past to be His chosen people.
But later they fell into dissension and started to worship the messenger Jesus himself as a son of God or as God Himself or as a part in Trinity.
This was in spite of that the First Commandment says clearly that God is One not three, and the Christ called himself the son of man.
Therefore, God sent Prophet Mohammed to warn mankind against the idolatry and the wrong-doing.
Prophet Mohammed and the early Muslims as the Chosen People of God
Mohammed - salam to him - broke the idols and the built tombs and invited people to worship God alone, so those who believed in him and followed him were the Chosen People of God, and they will be so as long as they commit themselves to worship God alone without associate, and say:
No god except God alone with no associate with Him.