The Palestinians have rejected a 2 State Solution every time it has been offered. Watch this fantastic video about the history of the creation of a Jewish State and a the numerous offers for a neighboring Palestinian State.
The reason why we are in the position of having to veto the recognition of a Palestinian State by the UN Security Council is because the Obama Administration has led the Palestinians that such behavior is acceptable.
For a look at what real leadership looks like on this issue, see this clip of Rick Perry today in New York.
His entire speech can be seen at Real Clear Politics at the link below.