Is that even LEGAL?!

One of my required courses to be able to graduate next semester got canceled and it is not offered anymore next Spring. My political science advisor "advised" me to find any political science course that is "somehow" relevant to this course and take it as a substitute. Eager to learn, I found this interesting course, human rights in contemporary Egypt, which is relevant to my given up for lost course, Egyptian constitution. I needed to get the instructor's consent to register in this "somehow" relevant course although it is the department's responsibility to get me the substitute.

It took a series of emails between me and the teacher to get the "divine" consent. At the very first email, I explained how my course got canceled and how it was easy for me to register for any of the political science courses that are offered next semester and take it as a substitution. But, because I am excited to learn something, I chose this specific course which is relevant to my specialization in law. The teacher asked about my GPA, and whether I am an "American Arab" or an "Arab"!!! I replied that my GPA is STILL 3.2 despite the fact that I have two Ds in my record which I am repeating to improve this GPA, and that I am Egyptian. The teacher never replied back, and when I asked for a reply anytime soon, I got this reply: "I'm afraid I cannot approve your enrollment on this course. Minimum requirement is 3.5 GPA."

I have never seen this teacher, and I don't wanna take this course anymore. I am just wondering what kind of students does this teacher accept in this "divine" course? Does the fact that this teacher asked whether I am an American Arab or a pure Arab ring any bells? Is there even such a thing as a minimum GPA requirment to enroll in a course? Is there an AUC policy that says so? IS THAT EVEN LEGAL?!