A furphy is a word that means a rumor or a made-up story that is told from person to person and is often not true. Imagine if your friend whispered a secret to you at school, and then you went and told it to another friend, who then told someone else. By the time the rumor gets around, it might have changed and not be accurate anymore.
Sometimes, people also use the word "furphy" to describe things that sound too good to be true or are just silly. For example, if someone said they found a unicorn in their backyard, that would be a furphy because unicorns are not real.
So, to summarize, a furphy is a story that is passed along from person to person, can change over time, and may not be true. It can also refer to something that sounds too good to be true or is just silly.