This verse tells us that “By mercy and truth iniquity is purged” – the fact that both are listed is very important.
As an aside, the Bible is worthy of detailed study because it is the word of God, and not the word of men. Every word has a meaning; we can be assured that God never misspeaks or wasn’t sure what to say.
Iniquity cannot be purged with mercy only… God cannot “just forgive” iniquity (sin). He would not be God. God is love, but He is not only love; He is also utterly holy and completely just.
Iniquity cannot be purged with truth only. The truth is that a Holy God demands that sin be paid for, and the wages of sin is separation — separation of the soul from the body (what we think of as “death”) as well as separation of us from God (which the Bible calls “the second death”). The truth of the matter is that this death (both types) is what all mankind deserves.
But the good news is that our iniquity can be purged; it was purged because the sinless, only begotten Son of God, Jesus Christ offered Himself in our place. There is mercy! God can forgive sin, because it has been paid for. There is truth!
What a wonderful combination!