SHOTLIST:Pool - AP Clients OnlyJerusalem - March 211. Medium shot of Obama looking out into crowd for heckler2. Pan of audience3. SOUNDBITE (English): President Barack Obama: "I have to say we arranged for that because it made me feel at home. (laughter) I wouldn't feel comfortable if I didn't have at least one heckler"4. Wide shot of Obama at podium5. SOUNDBITE (english): President Barack Obama: "Negotiations will be necessary, but there's little secret about where they must lead-- 2 states for 2 peoples. (applause) There will be differences about how to get there. There will be hard choices along the way. Arab states must adapt to a world that has changed. The days when they could condemn Israel to distract their people from a lack of opportunity or government corruption or mismanagement, those days need to be over. Now is time for the Arab world to take steps toward normalizing relations with Israel. (applause) Meanwhile, Palestinians must recognize that Israel will be a Jewish state, and that Israelis have the right to insist about their security. (applause) Israelis must recognize that continued settlement activity is counterproductive to the cause of peace, and that an independent Palestine must be viable with real borders that have to be drawn (applause)."6. Pan of audienceSTORYLINE:President Barack Obama delivered an impassioned appeal Thursday for Israel to recognize that compromise will be necessary to secure peace and lasting security for the Jewish state. Telling an audience of university students that the United States is their country's best friend and most important ally, Obama said the U.S. will never compromise in its own commitment to Israel's defense, particularly against threats such as the one posed by Iran and its nuclear program.