"Photoshopped" refers to a picture that has been altered or manipulated. The term comes from the name of a photography software program, and has become slang for any photo that's been changed, regardless of the method. Technically, to avoid confusion a photograph such as this one that was altered prior to the computer age should be called "retouched." ; )
If anyone's interested, we could start a thread of vintage retouched photos on the Imperial Family boards to showcase turn-of-the-century photo alterations...