US Ambassador to Israel Dan Shapiro addressed the Jerusalem Post Diplomatic Conference on Wednesday, warning that inaction on the Israeli-Palestinian diplomatic front could potentially lead to a "bi-national outcome" that threatens Israel's future as a Jewish and democratic state.Shapiro said that the prospects of a two-state solution were discussed in the meeting earlier this month between US President Barack Obama and Prime Minister Benjamin Netanyahu in Washington."We're realistic to recognize that a two-state solution won't occur during the remainder of the Obama administration," Shapiro said. "We may not even get to a situation where we have negotiations. But there is a great risk that we will slide toward a bi-national outcome that threatens Israel's Jewish and democratic nature." Shapiro said that leaders who wish to avoid such a future must be proactive and think creatively. "They must find the steps to take to avoid escalation, even absent negotiations."The US ambassador said that the US continues to discourage unilateral actions that damage the two-state solution, such as Palestinian appeals to the International Criminal Court and Israeli settlement expansion. Addressing the recent wave of terrorist attacks plaguing Israel, Shapiro said that there is no acceptable excuse or justification for terrorism. "We condemn it in the strongest terms, period. We forcefully engage the PA to stop the incitement that often stands behind it.""With Israel, just as with France, America's condemnation and total rejection of terror is unequivocal and rooted in the kinship of our open and democratic societies," he said.