Convert a voltage from 0-12V into a resistance from 0-264 ohm
That's a really tricky circuit since you don't actually know what will your simulated resistor will be subjected to… AC? DC? Pulses? sensor calibrators have such emulation circuitry and they have specified all of the limits in the user manual.
The simplest thing is to design for DC, assuming something like an 5-18V supply for your sensor excitation. 5V since it could be driven from some logic supply, 18V since it's the maximum 'safe' value found on electrical systems in car, usually.
Another thing is how is your resistor 'floating' in the electrical circuit: is it powered from the supply and read from the low side, grounded and the current read from the top or what else? In the general case you should assume both terminals in the supply range.
Sadly a digital pot is not really feasible because of the needed range: they usually work in the range of kiloohms. 264 ohm is really a low value for a level pot, it's almost 50 mA (that would also out of the range of most digital pots).
To emulate a resistor you need to check both voltage and current. Luckily your is a slow system so you can delegate the computation in software. I'd do it like this:

Measure the voltage at the terminals of the 'resistor'; a difference amplifier is perfect for the job;
Using a shunt measure the current on the 'resistor'; another difference amplifier with some more gain (they call them current sense amplifiers);
Some transistor (BJT or MOSFET doesn't really matter) driven by an opamp using a signal from some PWM channel: integrating the PWM with a capacitor you will adjust the base currrent/gate voltage and so the current sink by the transistor.

The tricky part is referring the transistor emitter/source to the low terminal (which is somewhere about ground in the general case).