First, two quotes:

“I do not think Nasser wanted war. The two divisions he sent to The Sinai would not have been sufficient to launch an offensive war. He knew it and we knew it.” — Yitzhak Rabin, fifth Prime Minister of Israel

“In June 1967, we again had a choice. The Egyptian Army concentrations in the Sinai approaches do not prove that Nasser was really about to attack us. We must be honest with ourselves. We decided to attack him.” — Menachem Begin, sixth Prime Minister of Israel

I think the best solution would be to turn historic Palestine over to the UN and make it an international state. The alternative is for Israel to show good faith and return to its old borders.