This, in my opinion, should be 1. However, in order to comprehend this one, we must first have an understanding of our depravity, and election. If you have missed those two posts go back and read them first.
The Gospel, in the most simple terms I can use is that God created man. Man rebelled against God and broke God's law. God, being a just judge (just judges must punish) has an obligation to apply the law to Man and execute the law. The wages of our rebellion (sin) is death. Death is hell. God must send Man to hell for breaking the law. God, being good, gracious, and merciful, built a loophole into the law. He never said who had to die--he just said that death is the punishment for transgressing the law. So God became flesh and came to earth. He lived a sinless life, never breaking the law. He then offered himself as a sacrifice to die in our place so that the punishment we deserve is satisfied, and we are no longer bound by the law. All we have to do is believe in Jesus (the God-Man), and repent of our sins, and we shall be saved from the punishment we deserve because Jesus died in our place. That is the Gospel, or Good news in a nutshell. There is a lot more to the story, and it is all beautiful and perfect.
If you prefer the Gospel presented more artistically, check out the video. He does a great job explaining it.
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