Can someone possibly explain (within the size of a stackoverflow answer) the code required in order to emulate a network interface? I just know that there is virtualization software out there like Qemu that does this specific type of hardware emulation, but have no idea how this would work. Lots of books will show you how to create a program that listens on a TCP socket, but not create a host that gets its own IP address.
VirtualBox is open source. As a VM, with networking support, it should be sufficient to demonstrate to you what to do, along with a working implementation. https://www.virtualbox.org/wiki/Downloads