The topic was "Jihad". So, it is about Islam and Muslims.
What is wrong in saying that some organizations are creating terror and destroying peace in the name of Jihad? What is wrong even if she said (by the way, she did not say that) that some Muslims are creating terror in the name of Jihad? That is perfect right.
For your information, this incident was covered widely in detail in many Telugu dailies. English dailies (Deccan Chronicle and Times of India) too covered it, but not in detail.
Read the newspapers two months back, for complete details.