This is a rush transcript from "On the Record," December 4, 2009. This copy may not be in its final form and may be updated.

GRETA VAN SUSTEREN, FOX NEWS HOST: Here at "On the Record" we give you the inside story. And tonight a one of a kind. You are going behind the scenes to a private dinner at Reverend Billy Graham's house. Special guest former Alaskan Governor Sarah Palin. After the dinner Governor Palin sat down with Reverend Billy Graham's Evangelistic organization.


SARAH PALIN, FORMER ALASKA GOVERNOR: I consider some of the political challenge that I go through, or some of the stuff that's in the media, or just some of the shots that we take, I think everybody's facing challenges. Some of my challenges just may be on the front page of the paper that day.

In fact, a lot of people say, why are you still standing? How are you still standing? Why are you coming back for more?

And then I get the opportunity to say, you know what? God strengthens me through the challenges. He -- and he also allows me to stay very, very grounded because of my family and my kids, and my kids reminding me of what's important every day.

What we go through that some consider challenges or some would consider something that would really put a stop to what your progress is or your efforts are, I hold on to that scripture, too, that says what the enemy seeks to destroy you with, god's going to turn it around for good.

I think everyone is born with a god-shaped void in their soul, in their hearts. And I think that everybody is seeking something more beyond what it is we can see, hear, feel, and touch today here on this earth.

When I was just a child, I, looking around, the grand creation that is Alaska, I knew in my heart and soul that someone had created the greatness that we call Alaska.

It really was a dream come true to get to spend some time with Billy Graham. He is to me as he is probably to most Americans and so many people around the world, such an icon and a hero. But more than that, I think an advisor and an educator, someone who so many of us have looked up to.

Spending time with him was for me perhaps once in a lifetime experience that I had so looked forward to. And I'm so thankful for the opportunity.


VAN SUSTEREN: Anne Graham Lotz was at the family dinner. She is president of Angel Ministries, author of the book "The Magnificent Obsession," and of course the daughter of Reverend Billy Graham.

And before we go to this dinner, "The Magnificent Obsession," you must tell the viewers what "The Magnificent Obsession" is.

ANNE GRAHAM LOTZ, PRESIDENT, ANGEL MINISTRIES: It's about embracing the god-filled love. Many people tack god on to their lives. And listening to your program, taxes come and go, jobs come and go, health comes and goes, relationships come and go, but we need a foundation that doesn't come and go.

And that foundation for me Abraham -- the book is based on the life of Abraham, the biblical character, and a foundation of a relationship, not a religion, but a personal relationship with god.

And actually listening to governor Palin just expressing her personal relationship with god, and you year people from all walks of life, all different backgrounds, and yet that foundation is what sees us through, because our relationship with god is permanent.

VAN SUSTEREN: You talk about relationship. We have a special relationship with your family. And I've had the privilege of meeting your father at his 90th birthday, but also your brother. We've gone with him to North Korea twice.

This dinner -- how did the dinner come about? Who was there?

LOTZ: The dinner came about I believe because the invitation had been extended to her whenever she was in the area if she could make the time to come up and see my father. And she was on this book tour. So this would be a good time for her to come up.

And I think it's interesting, Greta. My father just celebrated his 91st birthday. You were at the 90th, but he just celebrated his 91st birthday. I think people seek him out because of his relationship with god.

And so it's not just that he's spoken to so many people or written so many books or so many presidents. It's because of who he is in his spirit and in his heart. That's what she was seeking.

VAN SUSTEREN: And of course people were seeking him out for years. It's not just something recent. He's known an awful lot of people.

Here's an interesting picture we put back up on the screen with governor Palin and Trig, her young son. That's sort of a sweet picture taken.

LOTZ: It's very sweet. In fact, her mother took -- Piper was the little girl that was there, and then the baby, and went to take them back. I think she thought maybe they would disturb daddy.

But I said before you take them, we need a picture with daddy. And so they brought Trig over and he was fussy. And then the moment she sat him down and daddy held his hand the baby quieted down. It was really a very sweet moment.

VAN SUSTEREN: Your father looks great in that picture.

LOTZ: I thought he looked great. Hard to believe he's 91. His mind is clear, and he was very intrigued with governor Palin. The thing that he said afterward that impressed him the most was he thought she would come in full of herself and just take over and just dominate the conversation.

And instead, she was very thoughtful, sensitive, very warm, and what he said, sweet. He used the word, she was very "sweet" towards him, almost like she coming to visit her grandfather, very gentle and kind of letting him talk.

And he was very impressed, and very -- I think he felt encouraged that she -- in fact, the next day, I was with him and he said he wanted to call her and thank her for coming. And I'm sure that she wanted to do the same thing. He called and just thanked her for being there.

VAN SUSTEREN: Had you ever met her before that night? She spoke in that a little piece of being out in the public eye essentially.

LOTZ: No, I had not, but I was interested to meet her, because as a woman, and I've done many things that are the first time things for a woman to do. And I just admire her courage and her boldness. And she's a pretty tough lady.

VAN SUSTEREN: You talk about a tough lady. I've never met your mother. Talk about a woman who was a trail blazer. Your mother who grew up in Pyongyang and went to school in Pyongyang.

LOTZ: Talking about that relationship with god, it's because of my mother. She loved Jesus. And it was contagious. She loved her bible. She loved the word of god. And she taught me by her example to love Jesus and to love god's word. And I wouldn't take anything.

My daddy taught me about the commitment to serve and to step outside of my comfort zone and to serve god where god calls me. But it was my mother that taught me the real love for the scriptures.

And that's what we try to get across in "The Magnificent Obsession" because Abraham pursued a personal relationship with god one step at a time, one choice at a time, day after day. He wasn't perfect. He failed. He made mistakes. But he never quit. He just pressed forward, and in the end, God called Abraham his friend.

VAN SUSTEREN: So what's the lesson you learned from "The Magnificent Obsession." What's the one bulletproof lesson?

LOTZ: It set my life's goal. I started studying Abraham 33 years ago.

VAN SUSTEREN: Thirty-three years ago?

LOTZ: Thirty-three year ago. And so it's a lifetime project, if you want to call it that. But it's because Abraham knew god in a relationship god described as a friendship. So 33 years ago I set that as my life's goal. And I want to know god better today than I did yesterday, better tomorrow than I do today.

VAN SUSTEREN: Personal question, can you boss Franklin around? Who is in charge, you or your brother ?


LOTZ: Yes, I boss him around. I'm the older sister.

VAN SUSTEREN: Anyway, we look forward to traveling again with him if he will let us.

LOTZ: Thank you.

VAN SUSTEREN: And please tell him I said hello.

LOTZ: I will. You're very gracious. Thank you. God bless.

Content and Programming Copyright 2009 FOX News Network, LLC. ALL RIGHTS RESERVED. Transcription Copyright 2009 CQ Transcriptions, LLC, which takes sole responsibility for the accuracy of the transcription. ALL RIGHTS RESERVED. No license is granted to the user of this material except for the user's personal or internal use and, in such case, only one copy may be printed, nor shall user use any material for commercial purposes or in any fashion that may infringe upon FOX News Network, LLC'S and CQ Transcriptions, LLC's copyrights or other proprietary rights or interests in the material. This is not a legal transcript for purposes of litigation.