The State Prosecution appealed yesterday to the Supreme Court against a decision by the Nazareth District Court to release two Israeli-Arab 16-year-old youths from custody. They placed a bomb at the busy Golani Junction in the Galilee six weeks ago; it was found in time and safely detonated. In a ruling last week, Hon. Abdel Rahman Zouabi ordered the two to be released, explaining that they do not present a danger to the public because they have no criminal past, and also because a continued prison stay would \"be traumatic for them.\" Judge Zouabi even rejected the Prosecution\'s request to delay the decision for two days. The Prosecution maintains that the two are Fatah terrorists who intended to kill innocent people. They apparently received their instructions from their Fatah Tanzim handlers in the PA-controlled city of Jenin.