[step:Quotient $D^\star$ by the indistinguishability relation $\sim$ to form $I$]
Define the relation $\sim$ on $A$ as before: $p \sim q$ iff for every $w \in \Sigma^\star$, $\hat{\delta}^\star(p, w) \in F \cap A \iff \hat{\delta}^\star(q, w) \in F \cap A$. We check:
*$\sim$ is an equivalence relation.* Reflexivity, symmetry, and transitivity follow immediately from the analogous properties of $\iff$.
*$\sim$ is a congruence on $D^\star$*: for $p \sim q$ and $a \in \Sigma$, we have $\delta|_{A \times \Sigma}(p, a) \sim \delta|_{A \times \Sigma}(q, a)$. To see this, take any $w \in \Sigma^\star$; then by applying the definition of $\sim$ to $p, q$ with the test word $aw$,
\begin{align*}
\hat{\delta}^\star(\delta(p, a), w) = \hat{\delta}^\star(p, aw) \in F \cap A &\iff \hat{\delta}^\star(q, aw) = \hat{\delta}^\star(\delta(q, a), w) \in F \cap A.
\end{align*}
Thus $\delta(p, a) \sim \delta(q, a)$, establishing the congruence property.
*$\sim$ respects the accepting set*: if $p \sim q$ then $p \in F \cap A \iff q \in F \cap A$ (take $w = \varepsilon$ in the definition of $\sim$).
These three facts let us define the quotient automaton. Let $\pi: A \to A/{\sim}$ be the quotient map $p \mapsto [p]$ (the $\sim$-equivalence class of $p$). Define
\begin{align*}
I &:= (\Sigma, A/{\sim}, \bar{\delta}, [q_0], (F \cap A)/{\sim}), \\
\bar{\delta}: A/{\sim} \times \Sigma &\to A/{\sim}, & \bar{\delta}([p], a) &:= [\delta(p, a)], \\
(F \cap A)/{\sim} &:= \{[p] \in A/{\sim} : p \in F \cap A\}.
\end{align*}
Well-definedness of $\bar{\delta}$: if $[p] = [p']$ (i.e. $p \sim p'$), then $\delta(p, a) \sim \delta(p', a)$ by the congruence property, so $[\delta(p, a)] = [\delta(p', a)]$. Well-definedness of the accepting set: if $[p] = [p']$, then $p \in F \cap A \iff p' \in F \cap A$ by the definition of $\sim$ with $w = \varepsilon$, so the membership $[p] \in (F \cap A)/{\sim}$ does not depend on the representative.
Since $\sim$ partitions the finite set $A$ into finitely many classes, $A/{\sim}$ is finite, and $I$ is a finite deterministic automaton.
[/step]