Seems to me pretty likely that if some dude was, as they describe, once 'down' with Tip and/or Phife...that he would probably seek out their new rap record even years later without direct contact. And seems pretty likely that he would know they're talking about him. And if his name is actually George, then they've also just publically outed him to their shared social circle (ie all the people they went to high school with) which he might not have been prepared to do at that time. Can you imagine the realization 'They're talking about me'?

Maybe less so today....but back then EVERYBODY knew someone who was in the process of coming out of the closet/exploring their preferences around the age of 20. (Remember Ralph? Oh yeah Ralph. Did you hear he's gay? I always had my suspicions.....type thing) I would seriously doubt that they created the character in a vacuum. It's based on a real person.