and Grace
This is how mercy and grace were explained to me...
Say you were caught speeding, you know you deserved a ticket, however the police officer decided to let you go with just a warning. That's mercy because you know you deserved the ticket but the police officer forgave you.
Now let's say that you were stopped for speeding but not only did the police officer let you go with a warning but he gave you a thousand dollars because you were the 50th person he caught speeding that day. That is grace!
God gives us mercy and grace even when we don't deserve it!