This topic was not meant to be used to discuss Scotland... Let's get back to England/Britain.
I'm assuming the children are about 4 years old and that the parent who answered the childs question was American. The answer was not wrong. An Englishman is also British. And it could be that the parent didn't want to confuse the poor little child.
But, Europe has more centuries of history than America. Thus a much more complicated composition of countries.
Each European country has its own historical (hysterical) reasons for how it's composed today. And this is what the Americans cannot understand. Their history is only 200-300 years old.
riddlerstar, here's a tip for what you can do to "educate" the children:
Go back to your geography project and make sure that the map of the USA has all the States visable. Then at one point, ask the children which State they come from or which State their parents come from. Then, when all the children have said their bit, pick out the children from States such as California, Texas so you can say "You are then a Californian! And you are a Texan!" and so on with the state names one can do this with (have a little fun when doing this

). Then include that although they are from different states they are all Americans. Talk a bit about this and then go over to the European map and do the same sort of thing: People in Scotland are Scotish: People in Wales are Welsh People in England are English but they are all also British!! The children should be able to see the connection.
Don't make it too complicated BUT DO NOT make it too simple either, children are much smarter than we grown-ups give them credit for.
Oh and Mort-Hog...
*picks up a claymore, impales Mr.Hog in the stomache, and starts rosting him*
Ne'er miscaw the Scottish...
`OG'S ON THE BUIRD, LADS!
/Edward