MTSU is Division 1. They're in the Sun Belt conference, the same conference as Don Strock and FIU.
I find it hard to believe Muschamp would be inerested in this position. For starters I would almost guarantee it would be a pretty decent paycut from what he's making now. He would have a much better chance of moving up the coaching ranks by sticking with Saban and riding on the coat tails of Miami's future success rather than taking a job at one of the worst D-1 programs around and fading into oblivion in 2-3 years.