Can somebody explain the difference between hematite and magnetite, except for the fact that magnetite is - obviously - magnetic?
Streak is by far the most useful property for identifying hematite. It's the only mineral with a reddish-brown streak. If you don't get a streak plate provided (which would mean a terribly written event), magnetite is always black, but hematite tends to show some reddish colors, and its specular form looks totally different; it has a metallic luster.
Also, specular hematite can be magnetic, so don't be fooled into thinking that it must be magnetite if it's magnetic. As far as I know, only specular hematite is magnetic, and you won't ever confuse the specular form with magnetite.