Nobody says the story has to be based entirely in reality. If you can manage to believably "suspend reality" for the purpose of your story, or create technological and/or societal advances which allow for the suspension of reality, you could give us all quite an interesting read. Or, you could just go for the really absurd and forget about reality altogether, in which case, you might even go on to describe at some length the absurdity of the situation. A confused narrator can make for a very interesting vantage point from which to write.
By the way, these are not your only options for how to handle this, just the first few I could think of. Feel free to utilize one, more than one, or none of these ideas.
The wonderful thing about fiction is that there are no "right ways to write a story". There may be better ways, but each take on a particular story presents its own challenges. Have some fun with this and all of your future assignments. After all, if we didn't all enjoy the process, we wouldn't be here trying to learn to write better.