Yes and no. Did you look up the term?
Suppose a species is expanding its territory into a new geographic area (A, moving from left to right). A geographic barrier (mountain, but could be a lake, a glacier, a desert, whatever) makes a fork in the road; the species spreads its territory along both the upper and lower edge. As it spreads, small mutations accumulate. A can interbreed freely with B, even though some identifiable morphological or behavioral differences are observable. A can also interbreed with B' on the other side. B can interbreed with C, C with D, D with E, E with F; B' can interbreed with C', C' with D', D' with E', E' with F'. So, all are still one species, right? We have a population that is spread out, but anywhere along the ring we can see interbreeding among them. One species. Except that when these animals meet on the other side of the barrier, F and F' do not interbreed. The accumulation of mutations has taken two different paths (because natural selection is not directed toward any particular outcome), and as Frost would say, "that has made all the difference."
Code:
D
C E
B F
A A A A A mountain
B’ F’
C’ E’
D’
So, are ring species physiologically incapable of breeding? It depends. F and F' do not interbreed. They are clearly separate species. But each step along the way can interbreed freely. So they are clearly not separate species.
In the same way that Pluto is what Pluto always was, and it does not matter a bit whether we call it a planet or not, these animals are what they are, and it does not matter whether we call them separate species. For some, enough time has elapsed since the fork in the road that "whether they are a species" is difficult to tell (chimps and bonobos, for instance). For others, the fork in the road is far enough back that it is relatively easy (chimps and us).
This is a very brief cliff-notes version of the concept. I recommend "The ancestor's tale" (in particular, the chapter "the salamander's tale") for a more thorough explanation. Or just google "ring species", and have fun.