Er, so why was she teased and why did she have to tell the teacher how to say her first name? Am i misunderstanding something? Her first name is Mako right- written in katakana - マコ ? That is incredibly straight forward to read even for children. And pussy is omanko from what i remember - オマンコ.
They are calling her that even tho only half the characters are the same and are not even together? It doesnt sound that similar either.
I assume the teacher had a freudian slip situation. As for the kids, I think a shy, perhaps mumbling, person could easily unintentionally add a muffled n sound which could start the whole thing.
I also think the o is optional. This was actually a sort of plot point in Ayame 14, where one of the girls' last names is Mankovich