Warning: This has spoilers. First thing: Okay, I've been looking at the game's overall story, and I'm pretty sure that the Cold War ends at Act I. The entire premise of Act II is that the Republic and the Empire are beginning to attack each other again—the Empire attacks Taris, and the Republic attacks Balmorra. Also, I believe that Revan is freed during Act II, and Revan's escape stops Revan's influencing of the Emperor. This allows the Emperor to move forward on his plan to consume the galaxy like he did on Nathema, which is the focus of the JK's Act III. Also, Act III contains the battles for Ilum and Corellia, which are legitimate battles between the two factions.