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The expected Austrian-Prussian war finally happens. Austria, and it's smaller allies, are met by overwhelming and more advanced Prussians, Italians and other smaller states.
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Bismarck requested that King William makes peace with the Austrians to prevent foreign intervention
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After Austria seems like it is going to be sieged, and after Bohemia, Moravia and the Sudetenland by the Germans, the Hapsburg withdraw to the Kingdom of Hungary.
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Italy takes Veneto, Friuli, Coastal Croatia and most of Slovenia.
Prussia takes the German States that had fought with Austria and forms a union with the German States it was Allied with. Germany also takes Austria, South Tyrol ,the Sudetenland and Bohemia.
Independence is given to Slovakia (Including Moravia, but doesn't have Southern Slovakia).
Hungary is set up with the Hapsburg dynasty in charge.
Prussia proclaims Großgermanisches (Greater Germany)