Ladies, will you please offer your perspective on how to handle an awkward situation?

I was hired to teach a course at a local college but the course was cancelled when it did not reach minimum numbers for enrollment. The person doing the hiring told me she might be able to "move things around." Turns out this meant she told the other instructor that she was giving the other course section to me. She told me the other person just doesn't have a spark or vision and they feel more comfortable with me in the role.

So while I am flattered they went to the effort to keep me, I feel very awkward. If you were in my shoes, would you bring up the subject with the other professor (admit you feel uncomfortable, etc.) and what would you say, or would you just let it go?

*I should mention this person still has all of her other courses and responsibilities. I'm not technically threatening her job, but I bet it feels that way to her.

Help!