Okay kiddo, let's talk about something called the Peace of Augsburg. Back in the olden days, or what we call the 1500s, people had a lot of disagreements about religion. Some people believed in one way of worship, while others believed in different ways.
One group of people called Catholics followed one type of religion, and another group of people called Protestants followed a different type of religion. They did not see eye to eye on many things, which sometimes made them fight.
The Holy Roman Emperor at the time, named Charles V, didn't like all the fighting and decided that the best way to prevent it was to allow each ruler to decide which religion they wanted their people to follow. This was a really big deal, because before this, people weren't able to practice the religion they wanted.
So Charles V created something called the Peace of Augsburg. This was an agreement that allowed each ruler in what is now Germany to pick either the Catholic or Protestant religion for their people. People could also move between countries to be in a place where their religion was accepted.
This was a big deal because it allowed people to worship their religion without fear of persecution. It helped to end a lot of the wars and fighting that was happening at the time. It was kind of like when you and your friend argue about which game to play, but then you agree to play a different game that you both like so you can both have fun together.
So that's what the Peace of Augsburg is all about. It was a big step in allowing people to have the freedom to practice their own religion and helped to bring peace and stability to the region.