Two States: one state for the Palestinians and the other for whom?

This is from special envoy to Middle East peace talks, George Mitchell:

"They agreed that for these negotiations to succeed, [the talks] must be kept private and treated with sensitivity," Mitchell said, adding that "both Netanyahu and Abbas condemned all forms of violence that target innocent civilians. They reiterated a common goal of two states for two peoples."

Hmmmm: "They reiterated a common goal of two states for two peoples."

However, the Palestinian camp has always proclaimed that it won't recognize Israel as a Jewish State. Just yesterday Palestinian negotiator Nabil Sha'ath stated it again.

So, let me understand: Israel and Palestinians agree to work towards a two-state state solution: one state for the Palestinians and the other for....?

Now, if someone will tell me that the other is for Israelis - Jews or Arabs - then, please tell me if the future Palestinian State will also be for Arabs and Jews...

So, again, one state for the Palestinians and the other for....?

Can someone help complete the phrase and also help define the character of the Palestinian state?