Yes, Virginia Woolf in the movie is uandishi her novel Mrs. Dalloway. She was real and so is the novel. The book that the film is based on however, is also called The Hours and it's kwa Michael Cunningam. Hope that helps!
The name of the book is called The Hours. The book on which all this is somewhat based is Virginia Woolf's Mrs. Dalloway, which was originally going to be entitled The Hours. Hope that helped.