First of all, Catwhohas14 tails didn't name the red faced pup anything. The pup from the movie never had a name, and it will stay that way. Kiona is just her VERSION of the red faced pup. There are many other versions, some of which the pup is a boy. My version of the red faced pup is Ryona. You can make a version yourself if you want. It's perfectly acceptable. But if you put her as a character, make sure you put your username in there too to let others know it's your version and not just stealing the char from the actual movie.

Since the character itself is an official one from Balto 2 and Balto 3, you most certainly can. The only thing you have to do is give it an original name. In the movies, it had no official name. That was never resolved. "Kiona" is the name which CatWhoHas14Tails gave to her version of the character.

That much should be obvious...