Magnetism: (1) a physical phenomenon produced by the motion of electric charge, resulting in attractive and repulsive forces between objects (google).
The question wasn't whether a "real-world" magnet could interact with a virtual magent, but whether magnetism (attracting and repulsing forces between objects) could be virtually simulated. I think that magnetism can certainly be simulated.
If you're having a hard time conceptualizing this, think of wave phenomena instead:
Wave: (4) a periodic disturbance of the particles of a substance that may be propagated without net movement of the particles, such as in the passage of undulating motion, heat, or sound (google).
A "real-world" wave is constituted of physical particles such as water molecules or sports fans. But can a wave be virtually simulated? Sure. Does this mean I can surf on virtual waves? No.
(As an aside, there are reasons to believe that magnetism is actually a phenomenon that can essentially be described/explained via fluid dynamics.
http://arxiv.org/pdf/1202.4611.pdf;
http://www.fisica.uniud.it/~ffp12/ftp/fullpapers/T.Kambe.pdf;
Fluidic Origins of the Magnetic and Electric Fields: A physical interpretation of B and E)
So, I'll grant that—since a fundamental understanding of consciousness eludes us, one can't be sure that it can be simulated; however, I reject the notion that magnetism cannot be simulated.
Furthermore, I reject the notion that magnetism and consciousness are equivalent, or even similar, phenomena.
