It was a very short war (10 weeks) between Argentina and the United Kingdom for the control of the Falklands Islands, in the South Atlantic.
But the most important fact is: it was the last war in the history where two western countries fought on opposite sides.
I doubt Thatcher considered Argentina Western..
Whether she considered it western or not is irrelevant. Argentina is in the Western hemisphere, speaks a European language, is overwhelmingly Christian, a highly developed nation, and, at the time, was firmly pro-US. Heck, if you want to bring "race" into it, Argentina is even pretty "white", and the vast majority of its population is of European descent. There is no way that it's not counted as Western.
But anyways, the war was a blatantly imperialist move by Argentina, ironically enough. The Falklands are British.