Did Muslims and Christians and Jews live in peace in Palestine before World War 2?

NO. It is very unfortunate that this myth is widely believed and circulated.

The idea that there was peace specifically in Palestine prior to World War II is fallacious. Palestine had been the site of numerous militias and violent activities perpetrated by both Arab Jihadists and Zionist Settlers during the Interwar period. From 1936-1939 there was even an Arab Revolt against both British authorities and the Zionist Jewish Yishuv. Prior to World War I, there were violent attacks by Muslims under the protection of the Ottoman Banner on Jews and Christians in the territory to recover extra funds for the government. The idea that the British Mandate of Palestine was peaceful actually runs counter to historical evidence. The Pogroms in Safed and Hebron in the 19th century are further evidence of the inequality and problems between the Arab Muslims, who considered themselves to have a superior legal and political position and the Non-Muslims, namely, Jews, Christians, Druze, and Baha'i.