I believe the problem is with the question itself, and that is leading to the confusion.
Velocity is a vector, and measures both magnitude and direction. This means that to compare two velocities, you have to specify some direction, or clarify that you are comparing the magnitudes of the two velocities. Without specifying which of the two should be applied here, I do not think the question of "maximum and minimum velocity" is a completely valid one in this context.
That being said, I believe most people would also choose the answer that your teacher chose. Without a specified direction defined as a positive velocity, it would make the most sense to compare the magnitude of each velocity when determining which is minimum and which is maximum.
The magnitude is generally more important in this context, and is what most people would focus on. Magnitudes of velocity would determine how much energy it has, whereas a negative sign would just show that it is not in the direction defined as positive; not that there is an actual negative energy the particle would have.