What did Jesus mean when He quoted “ye are gods?”

The Pharisees accused Jesus of blasphemy because He stated that He was the Son of God.  Because of this Jesus quotes to them Psalm 82:6 to defend His claim.  This psalm deals with judges in Israel and how they are to judge righteously and are judged of God (Psalm 82:1-4).  Here God calls the judges of Israel gods because He has chosen them and they are to be children of the Most High (Psalm 82:1, 6).  The Jews accepted this idea and also that those who wrote the scriptures were godlike, in that God had chosen them and they were the oracles of God (John 10:35).  Jesus used this verse to show their hypocrisy because God the Father had sanctified Him and sent Him to the world to save the world, and the works Jesus did were proof enough that He was of God (John 10:35-38).