The answer is: True.
A group is defined as two or more freely interacting individuals who share norms, share collective goals and have common identity.
For a group to be functional, the prerequisite is that the members share a certain characteristic. A shared characteristic could be the same interest, shared values or representations. Members can also share ethnic or social background, or kinship ties. The purpose is, in any case, that the shared characteristic should give a sense of unity.