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The People of the Book who are kafir and the mushrikun would not be cut off until the Clear Sign came to them:
a Messenger from Allah reciting purified texts
containing upright precepts.
Those who were given the Book did not divide into sects until after the Clear Sign came to them.
They were only ordered to worship Allah, making their deen sincerely His as people of pure natural belief, and to establish salat and pay zakat that is the deen of the correct.
The People of the Book who are kafir and the idolaters will be in the Fire of Hell, remaining in it timelessly, for ever. They are the worst of creatures.
But those who have iman and do right actions they are the best of creatures.
Their reward is with their Lord: Gardens of Eden with rivers flowing under them, remaining in them timelessly, for ever and ever. Allah is pleased with them and they are pleased with Him. That is for those who fear their Lord.