[quote=The Nexerus]
Why did France surrender Alsace-Lorraine to the Germans? That area was carved out of France in the Franco-Prussian war, so it shouldn't even exist as a region yet, let alone be being given off to the German Confederation.
[/quote]
It doesn't quite make sense, no, but Prussia wanted the German Confederation to have the German-speaking region that is Alsace and the former Duchy of Lorraine. Since we're using a map with preexisting divisions, the territory that would have been transferred would be Alsace-Lorraine in all but name.