Here's the verse we're exploring. I've put it into the old Authorized Version (what the Americans call the King James Bible) just to make it more difficult!
Now let's explore what the verse contains. There are four phrases which are obviously key ones; operating on your own, or teamed up with somebody else, choose one of them and investigate further!
(Firtst of all, clear up what "generation" means. Look at a more modern Bible translation of this verse. Got it? Now to make sure, look at this page and check the word out in Greek.)
Why does God choose people? Can you find references in the Old Testament which explain why God chose Israel, and in the New Testament to explain why God chose us? Here are two ways you could approach this:
(1) Put the word "chosen" into Bible Gateway to see some of the other things/people/places God is said to have chosen - make a list of the most interesting ones.
(2) Look at the Greek word translated "chosen" (eklektos) on http://biblehub.com/greek/1588.htm and see what it says about God's "chosen" ones in the New Testament.
A "royal priesthood" means: people who are both royal and priests.
(1) So first find out: in ancient Israel, when was the king allowed to be a priest? (You could check this out in a Bible encyclopedia, but I'll give you a starter hint too: one name you might look up is Uzziah… If you read the story of his big mistake, you'll get the answer. (Also check out 1 Samuel 13:1-15 - same mistake - dire results.)
(2) Is there any example of a king who was a priest in the Old Testament? What does the New Testament say about him? (Hint to save you time: look up: Melchisedek)
What does his name mean? Does all of this tell you anything about Jesus, and anything about us (if we're a "royal priesthood")?
(1) This phrase is used only once elsewhere in the Bible. Where? (You need Bible Gateway for this - and remember to put " " marks around "holy nation" in the search box, so that you get the results for that exact phrase.) Who is it talking about? What does that tell us about our position now?
(2) What does it mean to be holy? Check out this word in a Bible dictionary - or look at the section on "holy nation" at http://www.preceptaustin.org/1_peter_29-10 .
(1) What does it mean? (Look at 1 Pet 2:9 on Biblehub.com and go to the "Interlinear" page - the word "peculiar" doesn't appear - what does?
(2) On that page, look for peripoiesin, then click on the Strong's number above it (4047) to find the meaning of the word
(3) On the right hand side of that page, look at the way the same word is used in other passages - then look at the NIV or Message translation of this verse in Bible Gateway. How does all of this help us understand a bit more about how God regards us?