Is it possible to interpret a string as pascal code?
IE. could I read a string from a file and run it?
Not directly, Pascal is generally a compiled language.
However there are escapes, you could use an interpreter that interprets a subset of Pascal like PascalScript.
In the future maybe dynamic loading pascal packages will be possible, but for that, you would need to ship .ppu's for what you link to.
In theory you can also work with plain DLLs/shared libs, but since then automated types and other RTL state are a problem, that is only for exceptional cases.