The "peace activists" were members of far-left, anti-Israel groups like IfNotNow and one literally called "All That's Left."
These groups, in order to accommodate the most extreme anti-Israel voices while pretending to be Jewish, explicitly say that they have no position on whether Israel has a right to exist to begin with. .
The "demonstration by far-right Israelis" was the annual Jerusalem Flag March, attended by tens of thousands of normal Israelis every year.
Here they are at Damascus Gate, where the "peace protesters" were trying to stop them by linking arms across the gate, the reason the police removed them..
There sure are a lot of "right wing Israelis":
The New York Times is saying that people who oppose Jerusalem being a united city are "peace activists" while those who march with Israeli flags in its capital are "far right Israelis."
That, my friends, is the type of bias that the mainstream media has against Israel.
UPDATE: Tamar Sternthal of CAMERA tells me that the caption came from AFP: