1 Peter 1:2

according to the foreknowledge of God the Father, in the sanctification of the Spirit, for obedience to Jesus Christ and for sprinkling with his blood:

May grace and peace be multiplied to you.

1 Peter 1:2

Okay. So we've got a bunch of different things being said here. Before we break it down, let's step back for a second and remind ourselves what's going on. Well, we're at the beginning of the letter and we know it's written by Peter and written to "elect exiles of the Dispersion" (1:1). As we begin verse 2, "according to" is referring back to these people Peter is addressing in his letter. And so, let's keep in mind who or what is being referred to.

On another note, we also see that the construction of the two verses together flow naturally from "chosen" in NASB.

To those who reside as strangers, scattered throughout Pontus, Galatia, Cappadocia, Asia, and Bithynia, who are chosen according to the foreknowledge of God the Father, by the sanctifying work of the Spirit, to obey Jesus Christ and be sprinkled with His blood: May grace and peace be multiplied to you.

1 Peter 1:1-2 (NASB)

In any case, let's start looking at these different parts of verse 2...

according to the foreknowledge of God the Father

If we follow the structure of NASB, it seems as though we are referring to these people being chosen when speaking about the foreknowledge of God the Father. First of all, this is obviously something that is being attributed to God the Father. It's not as if this foreknowledge is from Peter or from the Christians or anyone else. God the Father is the one who has this foreknowledge. Okay, so what is it? What is foreknowledge? Is it simply just knowing about it ahead of time? Did God simply know who would be chosen or elect beforehand? Some people may think that's all it means, but I suspect it's something more. However, let's come back to that later and move on for now.

in the sanctification of the Spirit

Okay, so we're talking about being chosen, and that is tied to foreknowledge. Continuing on that train of though, we now come to sanctification. Sanctification, being tied to being chosen, is something that is of the Spirit. The Holy Spirit does it's work in us, and that work is sanctification. What is sanctification? It is the process of us being holy and set apart. Specifically, we see the work as the setting us apart from sin.

for obedience to Jesus Christ

Along with sanctification, we get obedience. I guess you could call both sanctification and obedience goals or results of being chosen. 

and for sprinkling with his blood

What's up with this? Do we get sprinkled with his blood? This is a picture of what Moses did.

And Moses took the blood and threw it on the people and said, “Behold the blood of the covenant that the Lord has made with you in accordance with all these words.”

Exodus 24:8

Moses sprinkled the blood on the people as a symbol sealing their covenant. Similarly, the shedding of Christ's blood is necessary for the new covenant.

So What?

So what? I don't know what. At the very least, Peter is telling us who he's writing to and going on about who they are. Who are they? They've been dispersed. As we will read in this letter, they don't have it easy and have a lot of troubles. Are they beaten down? Are they poor? Are they the lowest of society? Well, when it comes to the only identity that matters, they are foreknown by the Father, sanctified by the Spirit, for obedience to Christ. And, of course, brought about by Jesus's blood.