sed command works on Fedora/Ubuntu, but doesn't work in Mac

Hi, I have a question.
I define a function using sed command:

replace()
{
    searchterm=$1
    replaceterm=$2
    sed -e "s/$searchterm/$replaceterm/ig" $3 > $WORK'tempfile.tmp'
    mv $WORK'tempfile.tmp' $3    
}

Then I call

replace 'test = 0' 'test = 1' $myfile

This code works well in both Ubuntu and Fedora, but when my teacher executed the script in Mac, he got the following error:

sed: 1: "s/test = 0/test = 1/ig\n": bad flag in substitute command: 'i'

Unfortunately, I don't have a Mac to test. Can anybody tell me how I should modify the source to make it work in Mac as well. Thanks in advance.

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