Fireurimagination
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Arbitration will be non binding as in case of Iran Nuclear Deal, both parties will have to sign on the dotted line to make it effective. Third party is just a facilitator for smoothing the way of dialogue as both parties are too emotional for their own good.
Kashmir is made out to be way more complicated then it actually is. As things stand it is one of the easier conflicts to solve provided the motivation is there. Nuclear parity actually went a long way in ensuring that neither party holds any unrealistic expectation
Third party can play a facilitator only if both the parties are genuine in effort and we know how much out neighbor believes in the dialogue process. If there is a third party mediation don't you believe emotions still will be high.