This is an example of poor dynamic keyword insertion. Of course Google has nothing to do with the ad. Someone is using dynamic keyword insertion to include the relevant keywords in their ad. (which increases click-through-rate)

Oh GOD you mouth-breathers slay me. It is an ad for a certificate in Terrorism Studies. http://www.terrorismstudies.com/content/ts/index.html It makes perfect sense that someone reading a story about terrorism might want to study it. We will need people learned enough about it to help fight it. Quit begging to be offended and start thinking.

I once saw a Google ad inviting me to “Buy used condoms on eBay”. I was skeptical at first but after I washed them out they were as good as new. I am only half way through my online terrorism certification but I will let you know how that goes, too. I am really worried about the final exam!!

What should Google apologize for? The ads were nonsensical, placed by humans, and selected by an algorithm . It's not like someone was sitting at Google hand-selecting ads about terrorism to run with articles about Mumbai… It looks at the keywords on the page, and then pulls out the relevant ads. In these case, the wildcard-style ads are just stupid, but who considers this to be offensive?