This is not true. Arafat and Fatah/PLO (secular, BTW), were willing to agree the UN 242 two-state solution and live in peace with Israel. This is why Bibi urged his Likudniks to support funding for Hamas, so they could become a viable - and violent - non-secular opposition to Fatah and thereby divide the Palestinians, making the two state solution impossible.

In many ways Hamas is Bibi's Golem, his Frankenstein monster. Hamas would never have won those elections without backing from Israel. But that was exactly what the Israelis opposed to a Palestinian state wanted.

I will repeat; Israelis opposed to a Palestinian state WANTED Hamas to win the elections in Gaza so that they would never have to entertain a negotiated peace with the Palestinians.

This article in The Times of Israel explains it more clearly:

"For years, Netanyahu propped up Hamas. Now it’s blown up in our faces"

https://www.timesofisrael.com/for-years-netanyahu-propped-up-hamas-now-its-blown-up-in-our-faces/