By 2 wires I assume you mean this is a switch leg with a black & white wire + a ground wire and nothing else. If that is the case then power is flowing in on the black wire and out on the white wire. If this is what you have simply connect the black wire in the wall to the black wire on the timer. Now connect the white wire in the wall to the blue wire on the timer. The red wire is not used in this type connection so put a wire not on it and put everything back in the wall. Here is a diagram of how to connect it with on 2 wires in the wall.
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