Option 3 is a possibility but not a fair one Like disputes around the world the fair solution would a two state solution but the Palestine’s have to help themselves by distancing themselves from the extremist elements. And there are some Jewish religious and national extremists too. the moderate ones shoudn’t take a blind eye to them simply because they are on the same team against Hamas. After the extremist ones are done with Palestinians they will find more wars to fight and more ways to oppress even other Jews in Israel. (see assassination of Rabin by one of them)