Yes, it is really OS/2.
OS/2 4.52 with the CPs to be more precise.
Can it run windows apps? If you mean Windows16 then yes, as nearly every OS/2 version has had the option to install/use the native Win16 runtime (Win 3.1 environment).
If you mean more recent Windows32 apps then, somewhat. There was a project (is a project?) called Odin that aimed to re-implement the Win32 API so that Win32 apps could run natively along side Win16 or OS/2 apps within OS/2. This is very similar to the approach/goal of the WINE project for Linux.
This project has been stalled for many years now and had only some limited success. However, it was picked up again by a private developer by Mensys in order to get Flash10 working on eCS. Whether or not this upadte to the Odin Codebase will make it to the public or not is another question, but I would be willing to bet that it would prove to be a very significant update in terms of what applications could now be supported under Odin.