The most difficult problem of all for a final permanent peace between Israel and Palestine is how to handle Jerusalem. And the question is not what solution is acceptable to all - there isn't one. Any solution will have gigantic reasons why it won't work. The question is, are those reasons larger than the arguments against all other proposals.
We also have to face the issue that there is more religious history in this location for three major religions than any other place on earth. And there are fist fights between sects within each group over who will administer their part of a building.
So what we need is an entity to administer Jerusalem who is a strong democratic government that has experience dealing with multiple religious parties, but whose religion is not any of the three that lay claim to Jerusalem.
What if we have India administer Jerusalem? With a requirement that the administrators they send may not be Christian, Jewish, or Muslim.
India is not perfect but they are a large vibrant democracy. They have faced their own internal issues with religious schisms. Yes their primary enemy is Muslim Pakistan, but their largest minority in India is also Muslim.
I can give you a large number of reasons why this wouldn't work. But... I think that list may be smaller than the list of reasons against any other administration setup.