Opening the verse
كُنتُمْ خَيْرَ أُمَّةٍ أُخْرِجَتْ لِلنَّاسِ تَأْمُرُونَ بِٱلْمَعْرُوفِ وَتَنْهَوْنَ عَنِ ٱلْمُنكَرِ وَتُؤْمِنُونَ بِٱللَّهِ ۗ وَلَوْ ءَامَنَ أَهْلُ ٱلْكِتَـٰبِ لَكَانَ خَيْرًا لَّهُم ۚ مِّنْهُمُ ٱلْمُؤْمِنُونَ وَأَكْثَرُهُمُ ٱلْفَـٰسِقُونَ
You are the best nation produced [as an example] for mankind. You enjoin what is right and forbid what is wrong and believe in Allāh. If only the People of the Scripture had believed, it would have been better for them. Among them are believers, but most of them are defiantly disobedient.
Narrated Bahz bin Hakim:from his father, from his grandfather that he heard the Prophet (ﷺ) saying about Allah, Most High saying: 'You are the best of peoples ever raised up for mankind... (3:110) He said: 'You are the completion of seventy nations, you are the best of them, and the most honorable of them to Allah