The Toughest part will be how to hook up the West Bank and Gaza to create a single Palestinian state. The settlers should not be too difficult. Adjust the border to something that makes sense. Settlers who find themselves on the Palestinian side of the border can immigrate to Israel or they can remain in Palestine and become Palestinian Jews. Israel has Arabs. Palestine can have Jews. It's the same thing. The tail will not wag the dog.
Woman moderately wounded by firebomb thrown at her car in north J'lem (Haaretz)
from the article: U.S. sees Washington peace talks as start of year-long process