Jail. The issues.

[Bulletzone]

If you don't want to be jailed don't do the following:
1- don't break the rules.
2- don't be racist.
3- don't talk to strange girls, especially about love and so.
4- mind your own business.
5- don't use in-game chat or pms to say illegal stuff.
6- be polite.
7- think before talking.
Hope this helps in the future.

Try reading next time:

Obviously this was not acceptable and i believe that i was rightly jailed and deserve my 15 hours.

I haven't the faintest clue whether Sophie is or is not a staff member but if she is, such a status is so childish no matter your stance on Transgender people, so I can faintly see where you're coming from.
In regards to the PM situation, it's a matter of who reports who.

Here's how it works:

x reports y
Both x and Y were using bad words.
Since x reported y, the admin checks PM's RECEIVED by "X" only!
Admin notices a lot of profanity towards X from Y.
Y is jailed.

They can't see the dialogue between the players but only the Pm's received by a player at any given time, so it's not entirely the admins fault, as I'm assuming they thought you were the only one being racist due to the report, which obviously was not the case.

Best you can do is submit a ticket the toonslab support site.