Grace, mercy and peace are three things that:

1. I desperately need from God in order to deal with my SIN
2. However I could not earn any of them, so it is must be a free undeserved GIFT from God to me.
3. Mercy is God helping me BENEFIT from the consequences of my sin and others by taking the overwhelming consequences on himself and coming into the remaining consequences and walking them with me, helping me learn from them to hate sin and hunger for righteousness.  Being freed from the penalty of sin.
4. GRACE: is God giving me the power to not sin in the present.  Being freed from the power of sin.
5. PEACE: is God helping me not fear future sin, since he will be there to help me, and the joyous looking forward to being in a sinless  place for all eternity. Being freed from the presence of sin.