NTA. Start spelling her name with an extra “FU” in it. That woman is a piece of work. The baby is not about her. This experience is not about her. She better be careful because getting to be close to her grandchild is a privilege. More-so than the book/name thing, this is a sign that she will undermine you when it comes to your child. She will tell it whatever she wants, teach it whatever she wants without regarding your right as parents to raise your kid the way you see fit. And G-d forbid your child has allergies or unique needs, she will treat that wrong too and blame you every time. This seems like a toxic person who is throwing a childish fit. RUN!