The third gift under the revelational gifts is the gift of discerning of spirits. The presence of this gift provides the ability to identify the particular spirit in operation, and the ability to see into the spirit realm. John 4:24 says God is a spirit. Believe it or not, there is a spirit world where angels and demons operate. This world is very real even though we may not be able to handle certain things there physically. This spirit realm largely controls or affects the physical realm. Therefore for you to be successful on earth, you must be an active player in that realm. When you are born-again, your spirit man is recreated in Christ Jesus.
