Recently countering demonstrations were held near the site of the former World Trade Center twin towers, commonly referred to as Ground Zero. Demonstrators in favor of the Ground Zero Mosque were heard chanting, "Muslims are welcome here. We say no to racist fear."
But, a Muslim is an adherent to Islam, a religion. Muslims are not a specific ethnic group.
The only conclusion I can draw is that that word does not mean what the demonstrators in favor of the said mosque think it means.
The original source material can be found here.