I would have been in the School office the next day. This teacher should be fired. If for nothing else the fact that she teaching wrong information to the students.
Or round up all the other parents who are as bewildered by this as you and go straight to the School Board. Ask them what kind of academic curiculuum (sp? Oh dear, I really need to look that up) allows a teacher to teach kids blatant falsities (such as George Washington not being born here).

Jeeze that still gets a out of me.