That's a retarded myth.

The word faggot has been used in English since the late 16th century as an abusive term for women, particularly old women,[7] and reference to homosexuality may derive from this,[6][8] as female terms are often used with reference to homosexual or effeminate men (cf. nancy, sissy, queen). The application of the term to old women is possibly a shortening of the term "faggot-gatherer", applied in the 19th century to people, especially older widows, who made a meager living by gathering and selling firewood.[8]