Yeah, it was an over reaction. It was an inappropriate assignment, but the assignment should have just been trashed and a different one given. If the teacher was aware of what it said or intentionally set that up she should be disciplined. Not fired or anything, just written up or something.
BUT that's the way it is nowadays. The muslims have stirred up such a shit storm in the world, especially the west, the very mention of them gets people's assholes tighter than a vice.
Somebody should try this experiment. Go to a crowded mall and yell "Christian!" 3 times and see how people react. Then go to another crowded mall or return later when different people are their and yell "Muslim!" 3 times.
My guess is that in the first instance, people will just think you're a nut. The second instance I am betting people will react very differently. They will be either afraid or angry or both. I bet you will clear a space faster than if you let a nasty fart go in a crowd.