The term "two-state solution" is sometimes mentioned in the news in the context of the affairs of

• (a) China: The phrase "two-state solution" is not the standard term used for China-related disputes. China’s issues are discussed in terms like One-China policy, Taiwan, Tibet, etc. Verdict: Incorrect.
• (b) Israel: "Two-state solution" refers to the proposed resolution of the Israel–Palestine conflict through creation of independent Israeli and Palestinian states living side by side. Verdict: Correct.
• (c) Iraq: Iraq’s conflicts are not commonly framed as a "two-state solution" issue. Verdict: Incorrect.
• (d) Yemen: Yemen’s crisis concerns civil war and regional intervention, not the standard "two-state solution" formulation. Verdict: Incorrect.

Answer: (b) Israel.