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The answer is yes in the category of groups. Suppose that $f: G \to H$ is a retraction with $G$ a free group. Then there is a homomorphism $g: H \to G$ such that $fg = \mathrm{id}_H$. Thus $g$ is injective and hence embeds $H$ isomorphically as a subgroup of $G$. But any subgroup of a free group is free, so $H$ must be free. The same proof works in the category of abelian groups also.