“Pretty face” is not in quotes, so it’s not technically false.
It was arguably Obama’s intent to say that, and I’m disappointed the author didn’t spend time doing so.
Obama’s campaigfn is trying to portray her as a token female: ‘lipstick on the bad old Bush policies’ if you will.
Of course they don’t dare do so openly.
I can't even find a statement from the transcript that even implies that, so yes it is false. Someone needs to explain what quote they are talking about and make the case what was meant.