Who are the true people of God?

The true people of God are defined by the following Biblical passage. Physical national Israel was never the holy nation referred to in Exodus 19:5-6. The true people of God and holy nation is described in this passage and they were never national ethnic Israel. Israel was a physical picture of the people of God, but they were not the real thing. The true people of God and holy nation and how they became the true people of God is clearly defined by Peter:

1 Peter 2:4-10 As you come to him, a living stone rejected by men but in the sight of God chosen and precious, 5 you yourselves like living stones are being built up as a spiritual house, to be a holy priesthood, to offer spiritual sacrifices acceptable to God through Jesus Christ. 6 For it stands in Scripture: “Behold, I am laying in Zion a stone, a cornerstone chosen and precious, and whoever believes in him will not be put to shame.” 7 So the honor is for you who believe, but for those who do not believe,“The stone that the builders rejected has become the cornerstone,” 8 and “A stone of stumbling, and a rock of offense.” They stumble because they disobey the word, as they were destined to do. 9 But you are a chosen race, a royal priesthood, a holy nation, a people for his own possession, that you may proclaim the excellencies of him who called you out of darkness into his marvelous light. 10 Once you were not a people, but now you are God's people; once you had not received mercy, but now you have received mercy.