Israel said that it would give up occupied territories if Palestinian Arabs a. paid a tax on the lands. c. recognized Israel's right to exist. b. paid a one-time fee for the lands. d. provide homes for displaced Jews.

This question is too full of misconceptions to try and straighten it all out, and all you're looking for is a quick answer anyway. Israel has already given "land for peace" several times, and never got peace. Israel has asked for peace negotiations based on acceptance of its right to exist. This is kinda necessary because it's kind of tough to negotiate peace with somebody who says you have no right to exist. Sadly, that was too much fot the other side to swallow, And they have refused so far.