No. The center engine is in the tail behind the passenger compartment. What you see at the base of the vertical stabilizer is the inlet, which has an S-shaped duct that leads to the engine. The Lockheed L-1011 has a similar arrangement.

I did a lot of business travel on the 727 and I like it greatly. Saddened to see it retired. It was designed for short-field operation and has the most amazing triple-slotted flap system you could ever want to see. When it deploys, it looks like the rear half of the wing is coming apart. Three engines gave it plenty of takeoff oomph. Its market niche was taken over by the later, larger versions of the 737.