Picking the words one by one; “living” obviously means being alive or having life, “holy” tbh is a vey deep word but in summary, we can say it means religiously AND morally good not religiously OR morally, “acceptable” means worthy of being accepted or up to the quality standards set down and “sacrifice” is an act of offering something precious to God.

Now that we have broken that down, let’s take another look at the passage, here Bro Paul is actually begging us to offer our bodies – Our lives that we hold precious, everything about us – (because of God’s mercy that has kept us till now and has made us have knowledge of Him ) as an offering to back to God, His ways, instructions, etc – When you give someone something completely, is it ideal to take it back?
He’s not just asking for our bodies, He wants it Holy – morally and religiously good not the pharisees kind of holiness of not practicing what they teach, judging and condemning people because you aren’t committing the same sin as them instead of praying for God to help them, advicing them as often as you can, letting them understand that God loves them but it’s the sin He can’t deal with so they need to repent, etc are you living a righteous life or a life of holiness?
He wants an acceptable sacrifice, this part is interesting because it means you can be living, holy and still not acceptable. At your free time, look at Genesis 4, Abel’s sacrifice was accepted because He gave the best of everything. Yes you are dedicated to God but how long do you spend praying or reading your Bible? 10mins? In church when it’s time to dance, do you just clap your hands instead of dancing because you don’t want to feel embarrassed? When it’s time for offering, do you give Him the lowest denomination you have? When it comes to service in church, are you just a church member or worker? He accepts the best.

That passage ends saying that is true and proper worship” have you been worshiping properly? If not, repent and do the right things so your worship will be true and proper.

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God bless!