Yes, WWE is fake to an extent, and everything is scripted entirely. The results of the fights/matches are pre-decided, the wrestlers partially follow a script in whatever they do, and whatever they speak. WWE has hired professional writers to jot the scripts.
How WWE is scripted?
The blood you see in matches sometimes is also real, but it is also planned in advance during the course of scripting the match. WWE Wrestlers hide pieces of blade in their wrist tapes and cut themselves at the appropriate moment to bring in more drama to the match and increase the level of excitement amongst the fans.