Fame was a 1980 movie about a high school for the performing arts in New York City. While this song - Irene Cara's first hit - won an Academy Award for Best Song, that's a songwriter's award, so Irene Cara didn't win this one.
She DID win one for this song, which she performed and wrote for the movie Flashdance. Cara, however, did not ACT in this movie, despite a rumor that she was the lead actress. Jennifer Beals (the actual lead actress in that movie) was not thrilled with that rumor. No matter - the movie, while critically panned, was a huge hit. And so was this song.