Final answer:
The term "Kingdom of Priests" signifies Israel's role in ministering in God's Temple, their unique status as recipients of God's Laws, and their example to the world through adherence to the covenant with Yahweh.
Step-by-step explanation:
The phrase "Kingdom of Priests" in regard to Israel signifies several interrelated concepts within the Jewish tradition and history. In the context of the ancient Kingdom of Israel, it meant that the Israelites were chosen by God to minister in his Temple, leading to the establishment of a shrine to Yahweh in Jerusalem by King David, and later the construction of the Temple of Jerusalem by Solomon, where a class of priests oversaw rituals and worship. It also implied that Israel was a special nation because they received God's Law, which included not just the Ten Commandments but also numerous other directives that governed daily life and worship, underscoring an exclusive covenant with Yahweh. Moreover, as the Israelites followed God's laws and lived moral lives as dictated by the covenant, they would demonstrate God's nature and values to the world.