This has become something of an urban legend. Each year, entering freshmen are "assigned" a book to read over the summer before their freshman year. I put the word "assigned" in quotes, because there is no penalty for failing to read the book; the book, in any given year, is the subject of ungraded seminars during freshman orientation. Two or three years ago, the "assigned" book did indeed deal with Islam; it is my understanding that it was a book about the Koran, and that it glossed over references to what fate should befall non-Islamists.
Don't get me wrong. I objected to the choice of reading material. It was a particularly tone-deaf choice in light of the fact that 9/11 was still fresh in everyone's mind -- which, of course, was why it was selected. The purpose of the "assigned" reading is to get the entering students out of their comfort zone, and to expose them to perspectives new to them. I have no problem with that concept -- if, once in a while, they'd pick a book on the conservative side. An abridged version of The Federalist Papers, for example. I'm not holding my breath.