What does the superiority of bani-Israel (Children of Israel) over all beings mean?

I read in some different surahs of Quran mentioning the superiority of bani-Israeli over all beings. What is true interpretation of these verses? > يَا بَنِي إِسْرَ‌ائِيلَ اذْكُرُ‌وا نِعْمَتِيَ الَّتِي أَنْعَمْتُ > عَلَيْكُمْ وَأَنِّي فَضَّلْتُكُمْ عَلَى الْعَالَمِينَ > > Children of Israel, remember My blessing wherewith I blessed you, and that I have preferred you above all beings; [Surah al-Baqarah Verse 47](http://quran.com/2/47)