Supposedly, Israel wants to declare Jerusalem their capital city. This is on religious grounds and historic grounds, I suppose.
Since this happened, a number of Middle Eastern officials as well as western allies of the US have warned that endorsing or supporting or recognizing this claim could damage relations with the Middle East, if not provoke hostilities. They want to preserve the chance for the "two-state" solution.
And this is where I roll my eyes because the "two-state" solution is garbage. Trash-truck juice.
Why? Well, Palestinians having their own nation sounds like a good thing, but it's only an empty gratuity. This nations politicians will be heavily influenced if not controlled by Israel. Their land- what goes in, out, and how it's managed will be heavily controlled by Israel. Palestine wouldn't even be a continuous nation, but more like islets separated by Israeli-owned lands or Israeli populated lands. Aside from that, being a pea-sized nation, it would be utterly dependent on outside sources for survival. And, of course, it would have no military to speak of to enforce it's own jurisdiction when Israel- as they have for decades- decides to just push their jurisdiction on something. Not only that, Israel is a regional super-power compared to Palestine. And it's supported and funded by the US to the tune of billions a year. This is aside from diplomatic, military, and logistical support.
What you are being shown is two "solutions" that aren't solutions for the Palestinians, but two options for gain for Israel. Your being led to believe that choosing one will somehow empower Palestinians, but that couldn't be farther from the truth. Neither the US nor Israel want to empower any nation not directly affiliated to it's own interests.