A search for Harold McCormick Elementary School of the Elizabethton Star newspaper in Tennessee showed no articles or references to the OP from May till the present. That doesn't mean it didn't happen. What it likely means is the OP is yet another Fox "News" attempt to create a tempest in a piss pot. In addition I was unable to find any news source other than Fox News reporting the story. Yes, extreme right wing, "patriot" fringe web sites printed the Fox story, but I could not find any other major or local news source corroborating the Fox story. In fact, as far as I can tell no other major or local news source questioned the the Fox story. It is a Fox troll story.
If indeed the event did occur as reported by Fox, it is probably illegal. The Nation of Islam is a religion. Religious literature should not be handed out at or by public schools that receive federal funds. Be that as it may, the information on the pamphlet is basically correct.