That's a fairly bad translation in my understanding. But sure. Ok. If you want to read it like that, yes. A race.
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How would you translate race differently? All translations are a gloss; I suppose you can take your pick:
γένος (genos)
Strong: G1085
GK: G1169
offspring, progeny, Acts 17:28, 29; family, kindred, lineage, Acts 7:13, et al.; race, nation, people, Mk. 7:26; Acts 4:36, et al.; kind, sort, species, Mt. 13:47, et al.
from 

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Bible Gateway passage: 1 Peter 2:9-10 - Mounce Reverse Interlinear New Testament
But you are a chosen race, a royal priesthood, a holy nation, a people for his own possession, so that you may declare the glorious deeds of the on...