"Ye also, as lively stones, are built up a spiritual house, an holy priesthood, to offer up spiritual sacrifices, acceptable to God by Jesus Christ. Wherefore also it is contained in the scripture, Behold, I lay in Sion a chief corner stone, elect, precious: and he that believeth on him shall not be confounded. Unto you therefore which believe he is precious: but unto them which be disobedient, the stone which the builders disallowed, the same is made the head of the corner, And a stone of stumbling, and a rock of offence, even to them which stumble at the word, being disobedient: whereunto also they were appointed. But ye are a chosen generation, a royal priesthood, an holy nation, a peculiar people; that ye should shew forth the praises of him who hath called you out of darkness into his marvellous light: Which in time past were not a people, but are now the people of God: which had not obtained mercy, but now have obtained mercy." [II Pet. 2:5-10]
Peter is clearly talking to the CHURCH. I'm sorry you're wrong, and I'm sure you are too. Nevertheless, the TRUTH stands. The text couldn't be any plainer.