Do you mean the historical context within the Islamic tradition? If so, the context is that in the Islamic view of history, "Israel" is another name for Jacob (the son of Isaac and the father of Joseph). The "Children of Israel" are, in other words, "Children of Jacob", i.e. his descendants. His twelve sons are considered the progenitors of the twelve tribes of Israel and the phrase "Children of Israel" is used frequently in the Qur'an to refer to both historic Jews as well as Jews in the time of Muhammad. The word "yahud" is also used in the Qur'an to refer to Jews.

You can find this described in any of the popular exegetical works of the Qur'an. Ibn Kathir's Tafsir has been translated into English and you can find it in his discussion of Chapter 3, verse 93.