Multiple choice The Ausgleich or Compromise of 1867 created a federation of states within the Austrian Empire. made Austria part of the German Confederation. granted the Czechs and Slovenes home-rule. created the Dual Monarch of Austria-Hungary. Reveal answer Fill a bubble to check yourself D Correct answer Explanation The Ausgleich (Compromise) of 1867 established the Dual Monarchy, creating two separate states under one ruler, which addressed the demands of the Hungarian nobility.