you also, like living stones, are being built into a spiritual house to be a holy priesthood, offering spiritual sacrifices to God through Jesus Christ.This is the continuation of the thought from the previous verse. When we fall on the side of God and His response to Christ, then we begin to become more like Christ. Notice first that we are become like Him as "living stones." There is something more solid about us when we are in Christ. He is our rock and our salvation, and when we are in Him, then we are becoming like Him.
Our work is not finished yet, notice that Peter says that we are "being built." This is not completed, we are a work in progress.
Like it also states so many times in the book of Hebrews, we are now priests of God. We bring our lives to Him as living sacrifices, and since we are in Christ, and all that we do is through Christ, we are pleasing to God because of Him.