You would think it means that, but that's a case of folk etymology. It never officially stood for anything, being made up by a marketing firm, but some suspect it was derived from the then-commonplace abbreviation "Hi-Fi" which indeed did stand for "High Fidelity", in reference to audio equipment. In that respect, one would expect pronunciation to be "High-Figh" and that is what I hear most often in the US.
Some folks I know pronounce it "wee-fee" but only in a facetious sense.
French speakers (and many other Europeans for that matter!) could certainly be forgiven for rendering Wi-Fi as "wee-fee" or "whiffy"; it's got one vowel, must be a monophthong! English does love to wrap diphthongs in single-glyph packages.