It's unlikely this is cancer but not impossible.
Prostate cancer has hardly any symptoms until it is advanced, but when it is advanced the PSA is usually in the hundreds. A urinary tract infection can course all of those symptoms, including a raised PSA, and a positive MRI scan.
There are a tiny number of cases of advanced cancer with low PSA. Probably 1-2% of all prostate cancers. So it could be cancer but fairly unlikely.
Have they tested and eliminated this being a UTI prior to doing the biopsy?
The fact they are doing a biopsy suggests the medics are more than a little concerned, but I would say this is much more likely to come back as all clear than as having cancer.