I’ve heard 2 interpretations:
on one hand, we know that we are ‘sm kadosh’ meaning separate from the other nations and the only way we’ll stay tahor is if we do not spend so much time with other nations so we won’t assimilate, that’s why we are called ‘ivrim’
on the other hand, I’ve been told that we are an ‘am kadosh’ meaning we have the obligation to GO out into the world and bring kedusha to them.
soo… what is it? do we stay separate or do we participate?