You can pass a string as a refence, but it doesnt matter, because string, unlike list, is immutable. So any change you do to the string will cause creation of a new object.
test_string = 'Test my immutability'
test_string[0]='B'
>> TypeError: 'str' object does not support item assignment
You can modify string like this though (by putting it into something mutable like list)
test_string = 'Test my immutability'
test_list = [test_string]
def reference_test(test_list):
test_list[0]=test_list[0].replace('Test','Fest')
reference_test(test_list)
print(test_list)
>> ['Rest my immutability']