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 How did the grace of God appear to all men?

Through the incarnation of His Son, Whom, in His infinite love, He made like unto us, to be our brother and teacher, that we might become children and heirs of God, and co-heirs with Jesus Christ.

What does Christ teach us by His incarnation?

That we should abandon impiety, infidelity, injustice, and worldly desires, and love God, and our neighbor, though he be our enemy, for God's sake. The incarnation also shows the dignity and greatness of man, for as God gave His only Son for our redemption, we thereby perceive the worth of man in the sight of God.

What does the Apostle mean by worldly desires?

He means by them carnal and sensual desires and lusts, such as impurity, drunkenness, avarice, and such like. Christ teaches us to renounce these by the poverty, patience, fasting, and innumerable privations of His life.

How do we live soberly, justly, and piously?

We live soberly when we use temporal goods according to the intention and will of God, and to supply our necessary wants; we live justly when we desire for, and render to, our neighbor what, by the example of Christ, we are bound to; we live piously when we give God His due honor, love Him above all things, and love all men, in Christ, for His sake.

At that time there went out a decree from Caesar Augustus, that the whole world should be enrolled. This enrolling was first made by Cyrinus the governor of Syria: And all went to be enrolled, every one into his own city. And Joseph also went up from Galilee out of the city of Nazareth into Judea, to the city of David, which is called Bethlehem: because he was of the house and family of David, to be enrolled with Mary his espoused wife, who was with child. And it came to pass, that when they were there, her days were accomplished, that she should be delivered. And she brought forth her first-born Son, and wrapped Him up in swaddling-clothes, and laid Him in a manger: because there was no room for them in the inn.