Every way in which you are confused about which is which, is your entire problem. This confusion is the ego - which simply is the belief that illusions are real.
If you believe that the physical world is real, you are confused about what is true and what is illusion.
Believing the world is real, when it is not, is confusion which will lead you further astray. It will lend credibility to parts of the ego's viewpoint and you will fail to fully believe that God is real.
Either God/Truth is real, or illusions are real. That's what you're choosing between. Each time you think this world has any truth to it, any answers, any solutions, any causes, any value, any meaning whatsoever, you are deceived.
If you think the world is not an illusion, to any degree, it is because you have given it reality. You've tried to turn it into reality. It is not inherently real. It is your wishful thinking that makes it seem real. And its apparent reality will make you seem to suffer and die.
It really is a choice between life and death, in the sense that if you are choosing that God's Truth is true, then you are choosing eternal life. If you are are choosing that the ego's illusions are true, then you are choosing death. But let's not forget, in truth, that death is an illusion and never a reality.
Death is not real. Sickness is not real. Suffering is not real. War is not real. Loss is not real. Separation is not real. Guilt and fear are not real. Darkness is not real. Insanity is not real. Bodies are not real. The world is not real. And this whole universe is not real.
You have to get to where it's absolutely clear cut, cut and dry, black and white. Only when you can begin to accept that this entire world is an illusion, can you begin to place faith and trust in God, which automatically means you are being forgiving because you are overlooking illusions, and this also automatically means that you are overcoming illusions.
This overcoming of illusions means you are not stopped by illusions, are not limited by illusions, and do not see any measure of weight or importance in illusions. You are not deceived by them. And they have no real power at all. And therefore, you are now a miracle worker.
A Course in Miracles is telling the truth IF God is the only truth and IF God did not create the world and IF there literally is no physical world. If that's not the case, then it makes no sense at all and you will be confused. You can't keep your illusions and experience reality.
Only the truth is true. Therefore everything your body shows you in this so-called 'precious world' is an illusion, and you should not believe in it. Put all your belief and trust in the fact that God is truth, and you will transcend the world and be a miracle worker.
Jesus showed us that this is possible. He learned that the world and the body are not real. He made his body disappear when he finally overcame the illusion of death. He saw the so-called 'real world' briefly, in its illusory loveliness, and then ascended to Heaven. We can too.
"There is no world. This is the central thought the Course would aim to teach" - ACIM