If Israel declares war on Hezbollah and not Lebanon, this market still resolves YES.

IE. If Israel declares war on Hezbollah, it still counts as war against Lebanon. Considering Hezbollah is almost the defacto military and one of the most prominant political parties in Lebanon.

Resolution will happen if either side declares war or performs wartime military action.

https://www.aljazeera.com/news/2023/8/9/israel-threatens-to-return-lebanon-to-stone-age-in-any-war-with-hezbollah

PSA:
I won't be betting in this market.