The Kedusha of Am Yisrael and Eretz Yisrael

What is the definition of "Kedusha" in general, and in particular, how should we understand the holiness of the Jewish Nation and the Land of Israel? Is kedusha (translated: holiness) essentially inherent, or is it acquired through Torah and mitzvot? Rav Kook's harmonic approach, based upon Tanachic and rabbinic sources, helps us make sense of these most basic issues.