[quote=solamelike]
Ok hypothetically what would happen if this happened.The German states become a third German country, that way we have Prussia, Austria and this other unnamed country.I imagine it would be a matter of who is in charge out of all of the states to run this new country?
[/quote]

The German States would all just participate in the same capacity in which they exist. I imagine they'd probably place their armies though under a joint command with Prussia and all fight together.