If one tries to fit that passage into the 1st century for instance, and the fact that Jerusalem was eventually destroyed at the time, then how does one make sense out of some of the following parts?
And they shall dwell in the land that I have given unto Jacob My servant, wherein your fathers dwelt; and they shall dwell therein, they, and their children, and their children's children, for ever; and David My servant shall be their prince for ever.
And the nations shall know that I am the LORD that sanctify Israel
Of course, the way a lot of Christians deal with a passage like this, it's meant to be understood as spiritual, and not literal. With that in mind then, the LORD never literally gave any literal land to Jacob? That's what you would have to believe if you somehow spiritualize this passage. Then it says...And the nations shall know that I am the LORD that sanctify Israel..keeping in mind if this happened in the 1st century, that Jerusalem was eventually destroyed. So IOW, the nations shall know that I am the LORD that sanctify Israel, because soon after Jerusalem was destroyed.
But it's not just this passage that many Christians spiritualize, they do it with numerous OT passages, especially of the prophetic kind. One may as well get it over with and spiritualize everything the Jews ever did in the OT, and just conclude none of it ever happened in a literal sense.