Two state solution. I don’t know enough about the area to tell exactly where the border should go, but I would think Palestine would consist of at least West Bank and Gaza. If the Palestinian territories end up being separated, some mechanism than ensures free transit between them must be arranged.

Two stipulations must be in place:

• Border protected by a neutral 3rd party, or a conglomerate thereof.
• Work permits available for those who want to work outside their own state. (After all, Palestine is dirt poor, and many Palestinians work in Israel)
• The ones who are opposed to a two state solution, or have actively worked against it, are barred from political leadership on both sides. That means no Hamas, and no Benny.