It's the year 2200, and much has changed not only in the magical world but in the Muggle world as well. The Muggle world, through all its technical/scientific advancements, have advanced to the point where its contraptions are almost the equivalent as magic. When this becomes apparent to the Magical World, they start to reveal themselves to the rest of the world.
The first one to do this was Japan, as they were very closely tied to their Muggle side all along. Then came America, followed by France, Germany and Britain. This has all happened recently, and the concept is still new to both sides, that they are in the same world and that they know of each other. While people on both sides have issue with this, whether it be prejudistic ideas, religious thoughts, or xenophobic feelings, there are also people on both sides that accept it and are open-minded to these changes.
Because of the aforementioned existing unity between the magical and muggle world in Japan, they are the country with the least issues because of the change. The American and French have some problems while the German and British have serious issues (such as making their schools unplottable for Muggles).
Now it's your choice, whether it be an adult dealing with change in both worlds, to a muggle, having to accept what was once seen as a fairy tale, to a student born in magic accepting the change. It's your choice, make your story line, play a role in the change and make a difference. You may be the one to create a change that no one had ever foretold.