The U.S. informed Arab governments Friday that it will support a U.N. Security Council statement reaffirming that the 15-nation body "does not accept the legitimacy of continued Israeli settlement activity," a move aimed at avoiding the prospect of having to veto a stronger Palestinian resolution calling the settlements illegal. But the Palestinian's rejected the American offer following a meeting late Wednesdy of Arab representativs and said it is planning to press for a vote on its resolution Friday, according officials familar with the issue. The decision to reject the American offer raised the prospects that the Obama adminstration may cast...