"Natural born citizen" means someone who is a citizen by right of birth, as opposed to someone who becomes a citizen through a legal process.
IIRC, Ted was born in Canada, to parents who are US citizens. That would make him a natural born US citizen, and therefore eligible.
I think his mother was born in the US, his Dad was still a Cuban. I don't know if the mom ever took Canadian citizenship.
That's not the interesting part to me, I was shocked to hear a Fox employee say it as just part of the news.
Sycamore