Answer:
Sacraments, as lutherans see it, must meet 3 criteria...
1. instituted by Christ
2. forgive sins
3. work to strengthen faith
Lutherans have two sacraments the Lord's Supper (Holy Communion) and Baptism.
And, the Lutheran symbolical writings refer to Confession and Absolution as "the third sacrament." So, most Lutheran scholars will say, "We have at least two sacraments: Holy Baptism and Holy Communion..." Whether or not Confession and Absolution is included in the list of sacrament has differed according to time and place. Lutherans are not dogmatic about the number of sacraments, but all agree that Baptism and Communion fit the definition.