Clearly, this refers to the gathering of Israel. Again, the chronology of events is important. Israel cannot be gathered until after the Restoration. Nephi makes it clear in his vision of the history of the world that the coming forth of the Book of Mormon and other latter-day scriptures must precede the gathering of Israel. He explains that these records were to go to the remnant of the seed of my brethren, and also the Jews who were scattered upon all the face of the earth, that the records of the prophets and of the twelve apostles of the Lamb are true (1 Nephi 13:39). The marvelous work and a wonder spoken of in the scriptures refers to this phenomenon—the kingdom of God spreading all over the earth to gather scattered Israel.
We should examine the gathering of Israel in both spiritual and literal terms. The spiritual gathering of Israel refers to those of scattered Israel recognizing the truth and converting to the Church of Jesus Christ of Latter-day Saints. Every time one with Israelite blood is baptized and confirmed, they are effectively grafted back into the mother tree. One might ask, “how can you say that the Church of Jesus Christ of Latter-day Saints is the mother tree?” Well, in the beginning of the allegory, the tame olive tree represented the House of Israel. As the story proceeded it was apparent that the mother tree represented early Christianity. Those that were righteously following the Savior were acknowledged as producing good fruit. Later, the mother tree was Apostate Christianity. After the Restoration, which occurred among the Gentiles, the mother tree is represented by the church and kingdom of God on the earth. Therefore, the mother tree is “spiritually” not geographically “the house of Israel.” All those baptized and confirmed into the Church are of the house of Israel, either by adoption or by birthright.
The literal gathering of Israel refers to scattered Israel returning to the lands of their inheritance. This is not the main focus of the allegory because those Jews and Israelites who are gathered back to Jerusalem prior to the Second Coming will not turn to Christ before he comes again. They will be the ones saying, ’What are these wounds in thine hands and in thy feet?’ (DC 45:51).