The balloon glass contains wine.
Wine is a homogenous mixture
Alcool present in the wine has the lowest boiling point, it distillates first. Then its time for water. Distillation is stopped after the passage of water. If alcool, water and the residue of the balloon were mixed, wine would be restituted. Distillation is a physics transformation See this video: → Distillation of a mixture of water ans acetone