There are quite a number of such sites, but the most famous is the Temple-Mount/Noble-Sanctuary area in the Old City of Jerusalem. It is the holiest site in the world to Jews and the third holiest site in the world to Muslims.
It began with the religious conflicts where Palestinians were not ready for peace.
It depends which "Conflict in Israel" the question is asking about. If it is asking about the Israeli-Palestinian Conflict, the conflict is, strictly speaking, between Israelis and Palestinians which are national groups, not religious groups. However, the majority of Israelis are Jewish and the majority of Palestinians are Muslim. (However, there are numerous Muslim Israelis, Druze Israelis, and there are both Christian Israelis and Christian Palestinians.) If it is asking about Israel's internal political conflicts, they are often between Secular Jews and Religious Jews.
No. It is very rare, but the probability increases if you talking about Arab Israelis and Palestinians (as opposed to Jewish Israelis and Palestinians).
palestinians
palestinians
The right of return was important to Israelis and Palestinians because they had been enslaved in another land.
The Israelis and Palestinians are fighting over a small piece of land called the Gaza Strip and the West Bank.The Israelis and Palestinians are fighting about a wide variety of things. Please see the Related Question to read more about the conflict.
There is an ethnic and national conflict between Israelis and Palestinians and therefore there are several cases of Israeli Security Forces torturing Palestinians. Additionally, a number of the laws used in the Occupied Territories are subject only to Israeli Military Review which prevents Civil Law from taking action to prevent such abuses. However, it is incorrect to assume that all Israelis or even most Israelis torture Palestinians.
Peaceful co-existence.
Yes. There are land disputes between Israelis and Palestinians and the land in dispute is located in Southwest Asia.
The West Bank
Yes, they do. See the related question on why that might be.