The question is how to deal with the crisis.

Literal

Problem [topic-は] how crisis [to-に] face [Q-か] [copula-である].

難局 ('crisis, difficult situation') is a formal Sino-Japanese compound: 難 ('difficult') + 局 ('situation'). どうして here means 'how' (by what method), an older usage — in modern Japanese it more commonly means 'why.' である is the formal copula.