Lets say the NCAA requires a "new" nickname and logo, meaning anything other than Fighting Sioux. There is no stipulation on what that name and logo is, so long as it is not deemed Hostile or Abusive. Therefore, why is can "University of North Dakota" "North Dakota" "UND" not be considered the nickname of the University's choice? There is no stipulation within the NCAA, that I am aware of, that mandates a nickname fall withing the category of some type of obscure animal, person, group, color shape, etc.
So long as UND is not the Fighting Sioux or another non-PC name, I don't see the NCAA having a big issue. If Pres Kelley said "University of North Dakota" was still on the table at some point, then it is probably fine from an NCAA stand point. There have probably been plenty of conversation between him or University groups and the NC$$ that we don't hear about.