@ragnell804 All hits must be applied. The transport is destroyed. If the Ottomans had scored only 1 hit, the Italians could have broken off the attack and saved the transport, at least for the time being.
Question about moving to contested territories
If a unit from Austria Hungary moves to Poland that is already contested between Germany and Russia but doesn’t have Austro-Hungarian units already present, does combat need to occur?
You are required to attack only in territories that have become contested this turn due to your movement
of units into them. Attacks in territories that were already contested at the beginning of the turn and in sea zones are always
optional, even if you have moved units into them this turn