Dunno why you're asking a random poster on Drama this, but IMO they need to actually try for peace. A two state solution has been offered by many Israeli PMs including Evil Warmonger Netanyahu. At the end of the day the vast majority of the Palestinian people have made it clear that they are not looking for peace - they are looking to drive the Jews into the sea. If you look at the Palestinian moderates, you'll see Saeb Erekat who recently praised terrorists, or Barghouti who is in Israeli prison for being a terrorist.

At the end of the day if you could assure the average Israeli that a two state solution leads to a peace without any attempt for further aggression, and no more terror attacks, you'd get around 80 percent of the population begging for that peace treaty. But literally every time Israel takes such a step the attacks increase. Whether it's leaving Gaza and having Hamas take over or easing travel restrictions and having a bomb blow up in a bus station a few days later there is a constant pattern that only shows that the only reasonable solution is entirely unworkable.

So the immediate solution I would implement would be to push to change the textbooks they get, as the UN approved ones have lies and incitement (https://www.google.co.il/amp/dailysignal.com/2016/07/11/administration-defends-u-n-funded-anti-israel-textbooks-for-palestinians/amp/?client=ms-android-samsung) and hope that soon there will be someone negotiation is possible with.