What was the significance of the Peace of Augsburg in 1555?

The significance of the Peace of Augsburg in 1555 primarily lies in its establishment of religious autonomy for German princes, allowing them to determine the official faith of their respective territories, specifically between Catholicism and Lutheranism. This was a pivotal moment in the history of the Reformation, as it formally recognized the existence of Protestantism within the Holy Roman Empire and marked the legal acceptance of Lutheranism.

By enabling princes to choose their territory's religion, it underscored the principle of "cuius regio, eius religio" (whose realm, his religion), which allowed for a degree of peace in a politically fragmented and religiously divided landscape. This agreement helped to mitigate the religious conflicts that had escalated throughout the Reformation, balancing power between Catholic and Protestant states, and representing a significant step towards religious tolerance, at least on a territorial level, in Europe.

The other options focus on ideas that were not fulfilled or inconsistently represented in the Peace of Augsburg. There was no established permanent division in a formal sense, nor did the Peace facilitate reunification of the Catholic Church or declare Catholicism as supreme across Europe, as it recognized pluralism rather than enforcing a singular faith.