Final answer:
The Palestinians were the group that lost and was forced to live under Israeli control following the creation of Israel in 1948. They faced mass displacement, destruction of villages, and confiscation of land, resulting in a long-standing refugee crisis that continues to affect the region.
Step-by-step explanation:
After the creation of the state of Israel in 1948, it was the Palestinians who lost and were forced to live under Israeli control. The establishment of Israel led to the Nakba, or catastrophe, marked by the forced displacement and exodus of an estimated 700,000 to 750,000 Palestinians. Numerous Palestinian villages were destroyed and the Palestinian people faced the confiscation of a majority of their lands. In the years following, these displaced Palestinians either sought refuge in neighboring countries or lived in refugee camps, where conditions have persisted in varying states to this day.
The UN partition plan leading to Israel's declaration of independence was not accepted by the Palestinians or the neighboring Arab states. Consequently, this rejection initiated a series of conflicts, starting with the First Arab-Israeli War where Israel defended its existence and expanded its territory. This resulted in even more Palestinians becoming refugees. The ongoing controversy over these events and the status of Palestinian refugees have been central to the Israeli-Palestinian conflict, influencing regional politics and international relations.