Would a One State or a Two State outcome be better for Israelis and Palestinians?

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For over a century the Palestinians have been demanding a state of their own and in the mid 1990s it looked as though that was going to be possible. However, a quarter of a century later it has become even harder to achieve, so both Palestinians and Israelis are asking themselves, which solution is better for both Israelis and Palestinians: living together in one state, or separately in two?