There's no straight forward way to convert the strings 'True' and 'False' to boolean True or False, so you're best bet is probably:
if test.lower() == 'true':
test = True
elif test.lower() == 'false':
test = False
You could shorten those conditionals even further by only taking into account the first letter:
if test.lower()[0] == 't':
test = True
elif test.lower()[0] == 'f':
test = False
Considering you don't specifically need to validate the second case, you could simply use else:
, and going even further you could simplify the assignment into a single line like so:
test = [False, True][test.lower()[0] == 't']