WEST BANK—In a historic breakthrough in the struggle for peace in the Middle East, Israeli and PLO leaders settled on a large ground-floor room in a West Bank office building to be used as a Palestinian homeroom. "Finally, we, the people of Palestine, have a room to call our own, a place where we can go at the beginning of each day to take attendance and listen to announcements," PLO leader Yasser Arafat said. The PLO held out until the 11th hour of negotiations, insisting that all Palestinians be permitted to talk quietly in their new homeroom.