We know that justification through the grace of our Lord and Savior Jesus Christ is just and true; and we know also, that sanctification through the grace of our Lord and Savior Jesus Christ is just and true, to all those who love and serve God with all their mights, minds, and strength. (D&C 20:30-31)
They who dwell in his presence are the church of the Firstborn; and they see as they are seen, and know as they are known, having received of his fulness and of his grace. (D&C 76:94)
The Lord hath brought again Zion; / The Lord hath redeemed his people, Israel, / According to the election of grace, / Which was brought to pass by the faith / And covenant of their fathers. (D&C 84:99)
Though for some time Mormons used the word salvation to mean more than one thing, over time, we have developed a relatively stable, semi-technical vocabulary for talking about it. We distinguish between 1) salvation from death, which everyone receives by virtue of Jesus' resurrection, 2) the salvation of a divine post-mortal reward (receiving a "kingdom of glory"—D&C 88:15-24), and 3) salvation into the presence of God the Father, which requires that we come to Christ (3 Nephi 9:14) and for which we use the term exaltation.
All of God's children are blessed with resurrection (salvation from death). Almost all are blessed with a kingdom of glory. And all those who come to Christ are blessed with exaltation into the presence of God the Father (D&C 88:16-20).
Some few who rebel against a full knowledge of who Jesus is will not receive a reward for this life (D&C 76:31-32). But there is otherwise no place in Mormon understanding for eternal punishment (D&C 19:4-12). Latter-day Saints are quasi-universalists: salvation from death is universal; salvation to a heavenly reward is almost universal. That said, however, only those who come to Christ will have life in the presence of the Father, exaltation.
Coming to Christ entails, of course, recognizing him as the Savior. It also entails trusting him, having faith in him. In turn, that entails repentance of our sins, being baptized, receiving and continuing to live in the presence of the Holy Spirit, and covenanting ourselves to God. As President Grant says, a godly life shows that our repentance—the change wrought when we trust in Christ—is genuine.
Though everyone will receive salvation from death and almost all will receive a kingdom of glory after this life, Latter-day Saints envisage Paul's promise, "as many as are led by the Spirit of God, they are the [children] of God" (Rom. 8:14), to be the fullest form of salvation. Ultimately salvation means life as a member of the Father's heavenly household. It means exaltation, the fullest human life possible, life as an heir with Jesus Christ (Rom. 8:17), the Mormon version of theosis.
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