Israel cannot "give back" the land to the Palestinian Arabs because the Palestinian Arabs never had it!

This is a very common misunderstanding.  Consider the history:

When the British Mandate was about to come to an end, and the UN General Assembly recommended partition, with part of Palestine to become a state for the Arabs, they rejected it.  They did not claim it as theirs.

Immediately following this there was a war in which the Arab states tried to destroy Israel.  At the end of the war, Egypt occupied the Gaza Strip and Jordan occupied Judea-Samaria. These areas were not in the hands of Palestinian Arabs.

In fact, the Palestinians said they didn't want the land of Judea-Samaria and Gaza!!

In 1964, the Palestinian Liberation Organization was founded.  Written into their charter was a clause stating that they had no claim on the areas in the possession of Egypt and Jordan.  If they considered Gaza and Judea-Samaria theirs, wouldn't they have appealed to Egypt and Jordan to turn over the land to them?? 

The claim that Gaza and Judea-Samaria were "theirs" was not made until Israel was in possession of this land: the Palestinian Arabs reversed their position in order to put pressure on Israel.