What to do with this activity?

At this young age the most important thing you can do is to talk to your baby or toddler. Tell them what you are doing as you go about your ordinary life - in the house, when you are out shopping, or pushing them in the buggy. When you are at home, sit them on your lap and show them a picture book, perhaps with a letter of the alphabet on each page. 

There's no need to teach them the letters of the alphabet yet - that's for the future. However, your two year old might enjoy activites based on one letter of the alphabet at a time. It's only for fun. The letters of the alphabet and the sounds they make will begin to become familiar. Show them the first letter of their own name and what sound it makes. It all helps to show them that reading is enjoyable. 

Have a look at these suggestions from "The Measured Mom" and organise some fun activities you can do together with letters of the alphabet.