Let's get fully out ahead of these skis and have the Pasadena discussion. Best as I can tell, only two paths exist:
1) The slam dunk path is running the table, including a win in Ann Arbor, to go 11-1. At that point in some sense I don't think it matters how the B1G championship goes because the committee won't put an Illinois team with a loss to Indiana in the CFP as far as I'm concerned, no matter what. So you win in Indy and you rep the B1G as champion in the Rose, you lose in Indy and you should still be the highest CFP-ranked team available for the Rose after the champion goes to the CFP.
The only scenario that muddles this is if Michigan beats OSU the week after losing to us, then turns around and beats us in Indy. I suspect an idle OSU (somewhat unfairly, IMO, but such is life in the CFP era) stays ahead of us in the CFP rankings in this scenario and by default gets the Rose nod. But this is a *pretty* unlikely scenario, all things considered.
2) The other, *much* less likely way to go about this would be as follows:
1) Michigan & OSU meet in their finale undefeated
2) We make it to Indy at 10-2 having lost our game in Ann Arbor
3) UM/OSU winner beats us in Indy, UM/OSU loser somehow still sneaks in CFP (I think if this is OSU it's slightly more likely because of the brand) if SEC teams cannibalizing each other falls the right away - such as Bama hanging a 2nd regular season loss, loser of Tenn/Georgia doing the same, etc
4) PSU has a 2nd loss on their resume in this scenario (OSU beat them) and so we're simply the clear cut highest ranked B1G available for the Rose
It's fun to dream.