Who gives a shit. Words are words. I've had teachers and people even here poke fun at me about being a Jew. Big woop.
Here are some ways to handle it:
- Ask the teacher if you could speak with her in private about a very important question.. when you're all alone with her, in the most serious and psychopathic tone and facial expression you can come up with, whisper to her loud enough so she hears every word and say the following: "I don't appreciate your anti-semitic remarks towards me, and if you do it again, I'm going to bring a bat into school for show and tell, and use your stupid ugly fucking face as a pinata, then masturbate all over your headless body" -- Guarantee she will never fuck with you again, hell, she'll probably pass you on every test and report and also never call on you again either. You may want to try this with other teachers too, although, don't go too far though.
- Ignore her. This is usually known as the "mature" or "adult" approach, I like to call it the pussified approach. People only stop harassing you when they know you have the means to cause significant harm to them. She sees you as weak and not a threat, you may want to change that, and give her reason to be afraid (see psychopath tip).
- Rat on her. If you're going to rat on her to her superiors, you may as well make it sound cool. Toss in some sexual harassment into it. Say that she made sexual advances towards you and it made you feel very tingly and funny in your private area. This can also backfire, so use with caution.
- Make her life miserable. This is probably the most fun one to do, and can also act as a reference to other teachers who may want to think twice about giving you a hard time about just about anything really. You're well versed with the power of blogs, myspace, facebook, etc. Get all of her info, photoshop some photos of her doing really gay shit, post her full info. You can also have your friends help out, or you can just create dummy profiles/accounts to make it seem like people are commenting on it. Then go to your local Kinkos, print out a shitload of flyers, and put something on it that says "Answers to all of the school's finals for $1" -- you know, something catchy. Put the page link of the spectacle you've created and then take every flyer and either do a mass dump in the middle of the front entrance area, or get some kids from the AV squad to stuff them into each locker in the school. You may want to remain anonymous about this too, and only have people drop hints that it MAY be you, but never come out and admit to it.
Warning: All of this "advice" is purely my opinion, and posted for entertainment purposes only. Should you get arrested, expelled/suspended, shot at, or raped in the bathroom by the seniors, I don't take any responsibility for whatever you do decide to use this for.