Jane Haining is the only Scot to have a place among the Righteous Among the Nations at the Yad Vashem Institute.
“As a result of their hard work, anyone who visits the exhibition will be moved by her service and sacrifice,” said Mr Stevens.
A piper played a haunting rendition of ‘Amazing Grace’ in the beautiful setting of the synagogue, which is at the heart of the Memorial, to bring the ceremony to a close.
The director of the Budapest Holocaust Memorial thanked the Church of Scotland for its assistance in making the new exhibition possible.
Centre spokesman Zoltan Toth-Heinemann said: “Jane Haining’s story is an important part of the history of the Holocaust in Budapest.
“She was unique because all the other players – rescuers, victims and perpetrators – were local people. She was the only one who had the chance to choose if she would stay there and risk her life to save children or just leave and return to Scotland,” he said.
Scottish Secretary David Mundell, whose constituency covers Dunscore, said: “When we reflect on one of the darkest times in human history, it is the unimaginable courage of individuals like Jane Haining that provides us with hope and a belief in the compassion of others.
"Her dedication to her pupils was unwavering.
"I am delighted that this new exhibition will not only remember her extraordinary bravery, but that her story can serve to educate and inspire others.”
First Minister Nicola Sturgeon said: "It is important to learn from historical events such as the Holocaust and Jane Haining’s remarkable and brave story is one from which we can all learn.
"Jane’s story and countless others must be remembered and shared in the hope that we will never allow such atrocities to take place again."
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