Well, Les-bi-honest here then... And how do you tell between 'she' and 'they'?
mag for sie (she) mögen for Sie/sie [(you formal)/they]
Mög(en) sie Frauen? sie=they
the ending of the verb
Why "Mag sie Frauen" has the "sie" and not "Sie" ?
"Sie" can mean either "she", "they" or "you". You can tell it's "she" here because "mag" is used rather than "mögen".
She = "Mag sie Frauen?"
They = "Mögen sie Frauen?"
You (formal) = "Mögen Sie Frauen?"
does mögen here have the conotation of romantic attraction?
Could it be also translated with the polite form of "you"?
No.
That would be "Mögen Sie Frauen?" "Do you like women?"
Could you also say Magst Du Frauen?
"Magst du Frauen?" means "Do you like women?", not "Does she like women?" as in this example.
Why is it not "Do they like women?