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Falkland Islands are an overseas British territory off the coast of Argentina. When Bart had Krusty deliver a pizza to him, he asked him how he could do this since his show was live at the time. Krusty explained that they put on an old re-run. The re-run was from when the Falkland Islands were invaded by Argentina in 1982, as Krusty explains this to his audience.
The Falkland Islands are mentioned in the episode Good Night and also in Treehouse of Horror II in Season 3. After Lisa wishes for World Peace with the monkey paw, a representative of England appologizes to an Argentinian representative saying, "sorry about the Falklands."