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Prussia is ruled by a German monarchy and also the more power Austria has the less power for Germany. link of source
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Friedrich Wilhelm rejected the crown because they did not have the right to bestow it and it required a contract. link of source
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Bismarck anticipated a fight between Austria and Germany. link of source
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Germany tried to not hurt Austria so that Germany might regain friendliness with her. link of source
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Germany won because Austria exhausted her strength in a conquest in the Alps. link of source
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Prussia called King Wilhelm to receive the crown and said that the German princes said it was ok. King Wilhelm said he would create strong borders and lasting peace. link of source