World models for deformable objects should recover not only geometry and appearance, but also underlying physical dynamics, interaction grounding, and material behavior. Learning such a model from real videos is challenging because deformable linear, planar, and volumetric objects evolve under high-dimensional deformation, noisy interactions, and complex material response. The model must therefore infer a physical state from visual observations, roll it forward under new interactions, and render the resulting dynamics with high visual fidelity. We present DeformMaster, a video-derived interactive physics-neural world model that turns real interaction videos into an online interactive model of deformable objects within a unified dynamics-and-appearance framework. DeformMaster preserves structured physical rollout while using a neural residual to compensate for unmodeled effects, grounds sparse hand motion as distributed compliant actuator for hand-continuum interaction, represents material response with spatially varying constitutive experts, and drives high-fidelity 4D appearance from the predicted physical evolution. Experiments on real-world deformable-object sequences demonstrate DeformMaster's ability to roll out future dynamics and render dynamic appearance, outperforming state-of-the-art baselines while supporting novel action rollout, material-parameter variation, and dynamic novel-view synthesis. Project page: https://can-lee.github.io/deformmaster-web/