An interactive system and methods of instruction and administration using virtual reality or other technology to create a simulated learning environment of multi-dimensional graphical representations of participants, who interact through individual and collaborative, task-based exercises, via an artificial intelligence engine utilizing an input/output arrangement over a network such as the Internet. This system facilitates synchronous or asynchronous, individual or group instruction to anyone with access to the Internet, measures the efficacy and retention of instruction, and automates faculty processes of grading, scheduled postings, feedback, generating quantitative and qualitative reports, generating adaptive lessons that adjust to participant input, and the like, with exportable and importable academic, financial, and demographic data to address the needs of faculty, administrative staff, including registrars, admissions officers, and counselors, as well as other interested parties such as parents and guardians.