It's all relative, but I'd say simply concocting a position (Commander, Baron, King etc) out of the blue and strapping into your in-game title is a bit much. Lesser titles you could probably get away with lying about (Remember that you would need to apply if you -really- wanted one of those titles in your background before you make your character
), but only if it were a commonly held belief among others. Personally though I'd prefer to see the who list reflect the truth for the most part. If you have no title and no occupation, or if you'd like to disguise your title then simply having a surname would do nicely.
