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This verse says that God gives grace to those who are humble and submit themselves to the elders. In the verses preceding this one, Peter tells the elders to watch over their flock and continue to teach them. If grace is unconditional as you say, then why does Peter say just the opposite here. Is he "mistaken" yet again as you said he was in Acts 2:38, even though the Holy Spirit guided the writers of the Scriptures?

So then grace is not unmerited favor? Or something that God gives to the unworthy ?

You can earn grace by how you behave and what you do? So then if you are saved by grace it is because you earned it? It is not a "free gift" of God. It is a wage for acting/behaving correctly

So then Salvation is by your reckoning not of grace... so lets move on to Mercy

If one is rewarded for acting correctly or behaving correctly then one is also not save by mercy?

I am sure you agree the word "mercy" is very narrow. For instance it would not apply to a "good time" release of a prisoner.. because he earned that time by " being good"

Now if the Governor looks at the record of a murderer and says , I am going to let him free ... that would be mercy . The man was judged guilty , and another in authority decided to release him from the sentence he deserved.. Mercy

So the salvation that you talk about and teach is a salvation of works . You make your self humble and get grace, you behave properly and you get grace, act correctly and preform certain acts and then you are freed, probation for "good time" no mercy needed . You have done it all yourself .

Romans 11:6And if by Grace, then is it no more of works: otherwise Grace is no more grace. But if it be of works, then is it no more Grace: otherwise work is no more work.

Grace = a Gift – Received – At – Christ’s – Expense.

You teach a "purchased gift" That is not what the scriptures teach

Romans 6: 23 “The free gift of God is eternal life in Christ Jesus our Lord,”

The Greek word charis, translated "grace", means the divine influence upon the heart, and its reflection in one's life, including gratitude. The word is translated variously in the Bible as 'acceptable, benefit, favour, gift, grace(-ious), joy, liberality, pleasure, thank(s), thank(s)(-worthy)' (Strong's Concordance.)

JK , This letter was written to the saints.. it was not written to the unsaved. It is written to the church about submission to authority, that is the humility that it speaks to . Only a saved man can be truly humble. God gives grace after grace to the saved, but it is never a "reward" or payment

The saved man boasts not in his works to earn his salvation... but in the work of God. Humility follows salvation, it is a part of the work of the Holy Spirit in us . God loves when His people honor Him. Grace is always grace.