My mother in law told me she wouldn't come to our wedding if I didn't invite my sister in law: What do I do?

I hope this is ok. I know it’s not exactly baby related. This is a long one. Sorry in advance. We haven’t spoken to my fiance’s sister in about 2 years. There was a lot of drama concerning her and her husband’s divorce that we (us and our two daughters) got dragged into. Family events are erupting in fights. There were even dating profiles being made using photos of them with our baby. It was very messy. The police were almost called over some things that happened. We decided to block them on social media and phones until they behaved like adults. The sister threatened a lot of things and even said my fiancee (her brother) was dead to her. 2 years later, we got engaged at Christmas, two weeks ago. There have been multiple meetups and “keep the peace” meetings for his parent’s sake. I’m usually to blame as I am the “blow-in” and “new one” to the family. As calm as we have been at meetups, nothing has worked, much to his parent’s dismay. The sister has acted like a child and stormed out. Also, she’s 15 years older than my fiancee. Now that we’re planning the wedding, the MIL asked did we add them to our guest list. MIL is old-fashioned and thinks just because they’re related; they need to sort things out, no matter what. Obviously, we said no since we don’t speak to them. Now, MIL has said she’s not coming to the wedding if we don’t invite them. I don’t want my partner to have a wedding without his parents. We’re stuck between a rock and a hard place. Can anyone help? Has this happened to you or can you suggest what to do?

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