This report provides information on the United Nations (U.N.) framework and process for options being discussed regarding possible Palestinian statehood, including overviews of the following topics: the U.N. and recognition of states, observer status in the United Nations, and the criteria and process for United Nations membership. The report also analyzes the prospects for avoiding U.N. action by reaching an Israel-PLO agreement to resume negotiations, as well as the possibility of a compromise U.N. resolution that could set forth parameters for future Israeli-Palestinian negotiations but stop short of addressing the question of Palestinian statehood beyond expressing aspirations.