ESV Therefore, preparing your minds for action, and being sober-minded, set your hope fully on the grace that will be brought to you at the revelation of Jesus Christ.
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As Paul said, it is only by God's grace (undeserved favor or mercy) that Christians are saved through faith in Christ (Ephesians 2:8-9). In light of that, I would say that the point Peter is making is that, in this present world (where God's kingdom has not yet been fully established), all Christians therefore necessarily live in hope (which is nevertheless not just a baseless or ungrounded fantasy, but a justifiable, forward-focused expectation) of the full and final outcome of that grace that will be realized and attained upon Christ's return in glory and the bodily resurrection of the redeemed.
I believe Peter is referring to us setting our hope on the grace we will receive when Jesus Christ is revealed at his second coming. So what is this grace we will receive? 1. If we are asleep we will be raised from the dead, if we are alive we will also be raised to meet Jesus in the air 2. Jesus will give us new glorious bodies that will be like his own body 3. We will stand before Jesus and receive our eternal rewards for our faithfulness to him 4. We will reign with Jesus in his glorious kingdom for 1,000 years 5. We will be saved from God's white throne judgment because our names are written in the Lamb's Book of Life (because we believed the gospel and accepted Jesus as our personal saviour) 6. We will live with The Lord God Almighty and the Lamb in the new heaven and earth for all eternity 7. We will be saved from: the penalty of sin by Jesus' sacrifice on the cross; the pollution of sin by the Holy Spirit making us pure and holy; and the presence of sin with our new glorified bodies, and with Jesus destruction of all evil and wickedness on the earth. 8. There will be no more death, or mourning or crying or pain for the old order of things has passed away and a new order has begun. My references are 1 Corinthians 15, 1 Thessalonians 4, Revelation 19, 20, 21, 22 We have a sure and certain hope of this future grace because of God's promises and because of his love and faithfulness in giving us the grace in which we already stand.
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