Combine peaches and wine in a food processor or blender; process until smooth. Strain peach mixture through a sieve into a large bowl; discard solids.
Combine 1 cup water and sugar in a small saucepan; bring to a boil, stirring until sugar dissolves. Remove from heat; stir in 2 cups water.
Combine peach mixture and sugar mixture in a 13 x 9-inch baking dish, stirring with a whisk. Freeze 6 hours or until firm, stirring twice during first 2 hours.