Think of justice, mercy and grace. If we are guilty, then we deserve justice. Or if we are guilty maybe we can hope for mercy. Grace is completely different. Yes, we are guilty, but through the death of Jesus on the cross we are justified ‒ made “Just as if I’d never sinned,” That’s an example of Grace.
We are saved by grace, through faith (Ephesians 2:4-6). It is the gift of God. We can’t earn it. Grace is the undeserved favour of God. God fully accepts us through the blood of Jesus. The blood of Jesus cleanses us from all sin. We are clothed in His righteousness.