Getting back tot he plot lines that need to be covered in Ep. 3... "The fall of the Republic" is actually covered in Ep. 4 about 10 minutes into it when one of the Admirals says "The Senate is no longer a problem, the Emperor just disbanded them", or something to that effect.
Pretty weaksauce, but technically the Republic isn't gone until *after* the rebellion has started and the Death Star is built, etc.
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