Yes, it was. The movie 'Reality' drew inspiration from real-life events and was adapted for the screen.
Not really. 'Reality' was more of a fictional creation with only loose references to real-life situations, rather than being a direct retelling of a true story.
Partly. The core concept of the movie 'Reality' might have roots in true events, but some elements could have been fictionalized or embellished for dramatic effect.