She's a British teacher who moved there to teach in the Sudanese school. Apparently, the students all submitted potential names for the bear (class mascot, maybe? not sure.) and then voted on it, and Muhammad won. Muhammad is not only the most popular name in the Muslim world (2nd most popular name for baby boys in Britain, if you can believe it), it's the most popular name in the world. However, though naming your son that is OK, I guess naming a toy that is enough for people to want you dead.
More examples of religious extremism going completely overboard and making people lose their tiny little minds over something that is, really, nothing at all. Now, I will say that, if she was going to go into another country that is this extreme in it's religion, she probably should have guessed this wasn't a good idea. Still, you gotta be kidding me. I fail to see how this is "insulting Islam," but then, I'm not a mindless automaton.