This has become a story in recent days, because Newt Gingrich brought it up. He asserts that the Palestinians are an invented people and that the term has only been in general use since 1977.
I remember 1977 and I'm pretty sure that Newt is right. But it falls under the "true, but irrelevant" category. We are now nearly 35 years on from 1977 and things have changed. There will be, and must be, a Palestinian state of some sort in the future. What it looks like is still open to debate. The converse is also true. There has been a Jewish state called Israel since 1948. It must exist, too.