The correct answer is B. Israel.
A two-state solution is a proposed political arrangement in which the State of Israel and the State of Palestine would exist side-by-side within the same land, with mutually agreed borders, and with Jerusalem as the capital of both states.
The two-state solution has been the official policy of the United States, the European Union, and the United Nations since the early 1990s. However, it has been rejected by some Israeli and Palestinian leaders, and it has been difficult to achieve due to the many disagreements between the two sides.
The two-state solution is often mentioned in the news in the context of the Israeli-Palestinian conflict. The conflict has been ongoing for decades, and it has been a major source of instability in the Middle East. The two-state solution is seen by many as the only way to resolve the conflict and achieve a lasting peace in the region.
The other options are incorrect because they do not refer to countries that are currently involved in a conflict over the establishment of two states. China is a unitary one-party socialist republic. Iraq is a federal parliamentary republic. Yemen is a republic.