Obviously the whole of Israel is not Jewish; that’s the entire point. The next line refers to Arab citizens of Israel, who (to quote B’Tsalem) “do not enjoy the same rights as Jewish citizens by either law or practice.” The Association for Civil Rights in Israel has noted that “Arab citizens of Israel face entrenched discrimination in all fields of life.” In other words, Arab Israelis are treated as inferior to Jewish Israelis. Acknowledging this is key to understanding the apartheid system in place in Israel (which discriminates based on ethnicity), and is in no way antisemitic.

Of course, the situation is even worse in the occupied territories; to quote B’Tsalem, “all Palestinians living under Israeli rule are treated as inferior in rights and status to Jews who live in the very same area.” However, while Palestinian Arabs receive the brunt of Israeli violence, Arab citizens of the state itself are also discriminated against. The B’Tsalem report (cited in the article) provides more specific detail, if you’re interested.