Convert Adobe Muse output to WP theme

Hi.

My designer is creating a theme for me using Photoshop and Adobe Muse.

I believe Muse can only create a html & css layout?

I also believe that WP works with php which is incompatible with html?

How can I translate a Photoshop design into a WP theme?

Or how can I convert a html & css layout into a WP theme?

Also would i need to upgrade to WP Premium or Business or get Custom Design?

Thanks

Mike