gift /gĭft/
noun
1. Something that is bestowed voluntarily and without compensation
grace /grās/
noun
2. Approval, favor
Of course, each word has multiple definitions in todays English. The combination of the two becomes an evolving state of relationship that goes from knowing by reading or hearing, to believing through experiences, to living within.
Ephesians 2:8–10; John 14:6; Acts 4:8–14; 2 Corinthians 5:17; Titus 2:11–14; Hebrews 4:13–16; 2 Corinthians 12:6–10; Colossians 2:16–23; 1 John 4:15–21