We think this means a state of Israel for the Jews and a state of Palestine for the Palestinians. US State Department is all in favor. Has been for years. Israel has given the idea a test run, in Gaza, and it hasn't worked out well. Israel removed the Jewish residents of Gaza, and turned the area over to the Palestinians. Since then, Gaza has been firing rockets over the border, which is an act of war in the real world. It got so bad the Israeli Army had to intervene last year, causing and taking casualties. I think they did stop the rockets.
With that background, Bebi said he would not favor the "two state solution" just before the Israeli election, which he won on Tuesday. Our State Dept went ballistic, and after the election, Bebi softened his words about the two state solution. I haven't bothered to look up just exactly what Bebi said each time. But I can understand where he is coming from. Gaza shows how bad the two state solution can be and surely plenty of Israelis don't want to have anything to do with it. Backing off a bit to mollify the American State Dept is also understandable.