יְיָ אוֹרַיְתָא לְעַמֵיהּ יְהַב יְיָ יְבָרֵךְ יַת עַמֵיהּ בִּשְׁלָם.
1. May Hashem give strength... | י"י עֹז לְעַמּוֹ יִתֵּן – Alternatively, this is not a request but a prophetic promise: "Hashem will give strength". See Ibn Ezra for both possibilities.
2. with peace | בַשָּׁלוֹם – If one reads the psalm as a metaphor for victory over enemies, the verse might be saying that peace can only come after a show of power. Only after Hashem gives strength to His people so that they can totally overcome their enemies will they be able to be blessed with true peace.