This image shows Grand taking over Equeia. The sign says in latin "This will have ponies". The image in particular takes place in the country of Equestria and even more specifically, the capital city; Canterlot. Yes, this is a reference to "MLP:FIM". Keinding writes: "Equestria: In an intense war with Grand,". The mountain on fire is probably Canterlot being attacked given it's on the side of a mountain in the show. The Grandians are blowing up either the day guards or night guards in placement of the day guards.