@Suman_expedited - Did the test ask "does or has any nation called Palestine ever existed"? I think you got that one wrong

It's something of an open question regarding citizenship oaths and current policies of the federal government.

For natural born citizens, for reasons you should be familiar with by now, it's an easy question with an easy answer. They came into the country without any direct decision making process involved.

However, the citizenship oath Suman must have declared reads as follows (ignore the stupid bit about injuns in a modern version):

I swear (or affirm) that I will be faithful and bear true allegiance to Her Majesty Queen Elizabeth the Second, Queen of Canada, Her Heirs and Successors, and that I will faithfully observe the laws of Canada and fulfil my duties as a Canadian citizen.

The laws of Canada include international treaties, and therefore the "faithful observance" of those treaties is a touchy matter. Legally the Canadian Government is a military ally of Israel and was ten years ago as well, so if the Israelis really were "occupying" a place called "Palestine" (as per the post title, they aren't) then when Suman pledged his allegiance he faithfully vowed to observe that military alliance too.