A book qualifies as a romance if the actual plot revolve around the will they/won't they get together and also has a HEA (Happy Ever After) or HFN (Happy For Now).
As far as I remember the plot of Chocolat makes it women's fiction (even though I don't like that label) as the main plot is about an outsider (woman) disturbing the quiet life of a sleepy village, but has some romance elements.
Book group fiction are normally books which deal with contemporary issues or universal themes and pose questions that can be discussed in a book group or books that sparks discussions, for example Kiley Reid's Such a Fun Age or Gail Honeyman's Eleanor Oliphant is Completely Fine.
Paranormal romance is a romance (so plot revolves around will they/won't they) and tend to involve vampires, shapeshifters, ghosts, or time travel, or people with psychic abilities.
Magical realism is more reserved to literary fiction that combined the realism of our world with a slight magical element like for example Gabriel García Marquez's One Hundred Years of Solitude.
Finally, our current world with a fantasy element normally falls under Urban Fantasy like Neil Gaiman's American Gods or Neverwhere.
I hope this helps.