I don't believe a Two-State Solution would resolve conflict with Iran. The conflict is not over borders but over two different identities. Each identity feels that they have ownership over the territory. So separating the territory into two states doesn't resolve the initial conflict between the two cultures. The two cultures are already very mingled with each other. It would benefit them to become one.
A two-state solution may help to relieve tensions, but it will not resolve the conflict itself. There are many reasons for a tense Iranian/Israeli relationship. Nuclear research, past wars, American support of Israel and meddling in Iran, ultra-conservative theocracy vs. A "westernized" democratic form of government...The list could go on. The conflict stems from fundamental differences between the two nations that looks to be a consistent barrier between the two.