GRO J1744-28 is the first known X-ray source to display bursts, periodic pulsations, and quasi-periodic oscillations. This source may thus provide crucial clues that will lead to an understanding of the differences in the nature of the X-ray variability from various accreting neutron stars. The orbital period is 11.8 days, and the measured mass function of 1.31 x 10(exp -4) solar mass is one of the smallest among all known binaries. If we assume that the donor star is a low-mass giant transferring matter through the inner Lagrange point, then we can show that its mass is lower than approximately 0.7 solar mass and probably closer to 0.25 solar mass. Higher mass, but unevolved, donor stars are shown to be implausible. We also demonstrate that the current He core mass of the donor star lies in the range of 0.20-0.25 solar mass. Thus, this system is most likely in the final stages of losing its hydrogen-rich envelope, with only a small amount of mass remaining in the envelope. If this picture is correct, then GRO J1744-28 may well represent the closest observational link that we have between the low-mass X-ray binaries and recycled binary pulsars in wide orbits. We have carried out a series of binary evolution calculations and explored, both systematically and via a novel Monte Carlo approach, the range of initial system parameters and input physics that can lead to the binary parameters of the present-day GRO J1744-28 system. The input parameters include both the initial total mass and the core mass of the donor star, the neutron-star mass, the strength of the magnetic braking, the mass-capture fraction, and the specifics of the core mass/radius relation for giants. Through these evolution calculations, we compute probability distributions for the current binary system parameters (i.e., the total mass, core mass, radius, luminosity, and K-band magnitude of the donor star, the neutron star mass, the orbital inclination angle, and the semimajor axis of the binary). Our calculations yield the following values for the GRO J1744-28 system parameters (with 95% confidence limits in parentheses): donor star mass: 0.24 solar mass (0.2-0.7 solar mass); He core mass of the donor star: 0.22 solar mass (0.20-0.25 solar mass); neutron-star mass: 1.7 solar mass (1.39-1.96 solar mass); orbital inclination angle: 18deg (7deg-22deg); semi- major axis: 64 lt-s (60-67 lt-s); radius of the donor star: 6.2 solar radius(6-9 solar radius); luminosity of donor star: 23 solar luminosity (15-49 solar luminosity), and long-term mass transfer rate at the current epoch: 5 x 10(exp -10)solar mass/yr (2 x 10(exp -10) to 5 x 10(exp -9)solar mass/yr). We deduce that the magnetic field of the underlying neutron star lies in the range of approximately 1.8 x 10(exp 11)G to approximately 7 x 10(exp 11)G, with a most probable value of 2.7 x 10(exp 11)G. This is evidently sufficiently strong to funnel the accretion flow onto the magnetic polar caps and suppress the thermonuclear flashes that would otherwise give rise to the type 1 X-ray bursts observed in most X-ray bursters. We present a simple paradigm for magnetic accreting neutron stars where X-ray pulsars, GRO J1744-28, the Rapid Burster, and the type 1 X-ray bursters may form a continuum of possible behaviors among accreting neutron stars, with the strength of the neutron-star magnetic field serving as a crucial parameter that determines the mode of X-ray variability from a given object.