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The defeat of the Ottoman Empire in World War I is significant because it directly led to the collapse of the empire, which had been one of the longest-lasting empires in history. Following their defeat in 1918, the empire faced numerous challenges, including territorial losses and internal strife. The post-war treaties, particularly the Treaty of Sèvres in 1920, dismantled the empire and resulted in the loss of large territories.

This event also set the stage for profound political changes in the region. The discontent with the terms of the treaties and the desire for national sovereignty among various ethnic groups within the former empire catalyzed a nationalist movement in Turkey. This movement ultimately led to the establishment of the Republic of Turkey in 1923 under Mustafa Kemal Atatürk, marking a definitive end to the Ottoman rule and the creation of a modern nation-state. The other options, while related to the history of the Ottoman Empire, do not encapsulate the fundamental event that signified its end as clearly as the defeat in World War I does.