As a curator I would not categorize this as a fake. A fake is made with the intention of deceiving. This in my opinion is an old (non war time) Confederate flag probably of private manufacture. It could well be a reunion flag, something from a school play or even intended to fly at a foot ball game . The main thing is that it is not Civil War. I would suspect from the material and construction techniques that it may have made early to mid 20th century. Used to play Civil War in the early 60's with one that was very similar.

Bob