Final answer:
The earliest mention of Israel in Palestine from an external source is the Merneptah Stele, dated to 1207 BCE, which is an Egyptian record of pharaoh Merneptah's conquests mentioning 'Israel' in Canaan.
Step-by-step explanation:
The earliest mention of Israel in Palestine from an external source is found in an Egyptian record known as the Merneptah Stele, which dates back to 1207 BCE. This artifact, created by the Egyptian pharaoh Merneptah, boasts of his conquests in Canaan and is the first non-biblical reference to a people called 'Israel' living in the region of Canaan, which substantiates the Hebrews' presence in that area.
Although the Bible provides a detailed history of the Hebrews and their experiences including enslavement and eventual liberation, it was written in a mythic mode and lacks contemporary corroboration, making it necessary to rely on archaeological evidence and other historical sources to construct a factual narrative.
Among the options provided for the earliest mention of Israel from outside the Bible, option A) The Amarna Letters by Egyptian Pharaoh Akhenaten circa the 14th century BCE is not specifically about Israel, option B) The Dead Sea Scrolls are not a historical account, option C) the writings of Herodotus do not mention Israel at this early date, and option D) The Babylonian Chronicles by Nebuchadnezzar II date to a later period. Hence, none of these options are correct regarding the earliest external mention of Israel.