When Peter woke up from his magical transportation, he found himself to be wearing old and tatty robes with a wizard's hat and great long beard. It was as he had feared, he had become Gandalf! He had to find some sort of civilisation and so he made the decision to walk and walk until he found someone that could help him in any way.
Peter walked and walked until he stumbled upon an old cottage in the middle of the forest. When he knocked on the door a clearly devastated man answered and without warning burst out into tears and was crying about how a dragon took his daughter whilst they were at the market. He claimed he was too scared to enter the dragon's cave and so presented Peter with the challenge of retrieving his daughter from the dragon.
Peter wanted to know what the man could give him in return and explained that he needed to get back to his own world and so the man replied with the fact that he could grant Peter access transportation device that could send him home. So naturally Peter accepted and set off immediately.
Peter journeyed for many a year and finally he found the dragon's lair. It was a battle of magic against fire, brain against brawn. At last, someone came out on top and it was, of course, Peter. He retrieved the man's daughter and made his return.
The man was overjoyed to his daughter once again and so in return, he kept his promise and granted Peter access to his transportation device and Peter made his way back to his own world; where he belonged.
Then Peter woke up and looked to his left where he saw his copy of the Hobbit. It was all a dream, everything was as it had been before.