Children with Jewish heritage

I want to clarify the place of my children in the greater Jewish community. My husband is ethnically Jewish with both parents who were raised in conservative Judaism. My husband was raised in Reform Judaism. I am not ethnically Jewish nor do I practice Judaism. We were married by my Episcopalian rector and a reconstructionist rabbi who co-officiated. My toddler was baptized Christian and I am raising her in a Protestant denomination. I/we go to church 2-3x a month with her and I actively do Christian formation/Bible study at home with her. We celebrate Christian holidays religiously – not secularly. Before children, we participated in some of my husband’s family holidays, Passover, Rosh Hashanah, Hanukkah, and go occasionally to break fast at Yom Kippur. I did not participate, just observed and sat at the table. Since my children are Christians with Jewish heritage, will they be accepted by their Jewish peers in the public school in our area? Will they be treated differently by them or teased? Are they ‘allowed’ to participate in the Jewish rituals at these holidays, like saying the blessing, lighting a menorah, or reading from a Haggadah at Passover with their grandparents, or is this not possible in Jewish tradition since they are being raised in the christian faith? I’m very confused what is acceptable practice for children with Jewish patrilineal lineage. TIA for your insight.