The Children of Israel are mentioned many times in the Quran. The Quran goes in depth about the history of Banu Israel, including their trials and crimes. The Children of Israel are depicted as a group of people whom God had favored at first and made superior to other nations. They were the descendants of Prophet Jacob whose other name was Israel, and mostly they are now known as the Jews. In other words, the Children of Israel are the people of Moses and some of them became followers of Jesus such as the twelve disciples of Jesus. All in all, the Children of Israel defied God’s commands except for some of them.
The Quran mentions that Allah bestowed His favor on the Children of Israel and made them excel the nations [2.122]. It also reminds them of the covenant they made with Allah and urges them to be faithful to it [2.40]. The Quran also mentions that Allah gave Musa (Moses) the Book and made it a guidance to the Children of Israel [17.2].
There is no mention of the modern state of Israel in the Quran. However, in chapter 17:104, the Quran refers to the return of the Jews to the Land of Israel before the Last Judgment. It is important to note that the Quran recognizes the Land of Israel as the heritage of the Jews and explains that, before the Last Judgment, Jews will return to dwell there.