Can the verizon iPad update to ios 4.3?
iPad 1 from Verizon was a normal iPad with a Verizon hotspot, and they can update to 4.3. According to Apples website, iPad 2 from Verizon (which now has a CDMA chip inside) can also update to 4.3. 

Verizon iPhones can not update to 4.3, and that may be what this is about. Verizon iPhones are still 4.2, and so therefore if you are targeting 4.3 - those verizon iPhone users can't use your application. Their email states that this is just Verizon iPhone users.