Option 1: like most Americans, I support(ed) a two-state solution ever since I became fully aware and informed of the issue in high school, with Israel and Palestine living side-by-side as (hopefully) liberal democracies.
However, beginning with Yasser Arafat basically walking away from the
Camp David Summit in 2000, Hamas taking over Gaza in 2007 after Israel dismantled its settlements there, and finally rendering the notion of a contiguous Palestinian state in the West Bank untenable with its expansion of settlements, I have glumly concluded we are likely to end up with a one-state solution, with Israel becoming a Jewish apartheid state, with the Palestinians in the role of the repressed black South Africans prior to 1994.
It won't end well for Israel as it chooses to become a pariah.