Please follow this instruction ( your Transformation Parameter is incorrect )
1. you can digitize shp and using palestine 1923 ( Or can be use Define Projection in Arc Toolboks>Data Management Tools>Projection and Transformations>Define Projection)
2.Insert New Data Frame after going to Data frame Properties>Coordinate System and Select WGS 1984
3.can be Dragging from shp layer to the 'New Data Frame'
4. 'Geographic Coordinate Systems Warning' Display in Screen.
5.Select Transformations... Button in Warning Screen
6. 'Geographic Coordinate System Transformations' window is display, and already filling the information in 'Convert from' and 'into' coordinate, you can see the Drop down arrow in 'Using' tab. Finally can be select 'Palestne_1923_Yo_WGS_1984' and click OK
7.Go to Layer to KML in Arc Toolbox>Conversion Tools>To KML (Please use scale 1:1000)
8.You can make KML and drag to Google earth.