Exactly. String theory is essentially an ordinary quantum theory of 1-dimensional objects instead of 0-dimensional ones; entanglement works the same way in both cases.
As for an explanation of entanglement, I think it’s best to think of quantum theory as a generalized probability theory, where it isn’t extraordinary at all that the acquisition of knowledge about one object changes the knowledge about another, even arbitrarily distant, object, and hence, the way you describe it (i.e. the probability distribution). The difference is that in quantum theory, there’s nothing ‘behind’ the probability distribution, but rather, it’s all you get. So, for a classical example, say you have two boxes, and you know that in one, there is a red ball, and in the other, there’s a green one. One box, you keep; the other, you send to Mars. You describe your box as a probability distribution. Since you have no information helping you to decide whether the ball inside is red or green, that probability distribution is going to assign a probability of 50% to either possibility.
Now, you look inside, and acquire information. Say, you find a red ball. Your probability distribution will ‘collapse’, as one option becomes excluded, and now assign a probability of 100% to the option ‘red ball’. At the same instant, your description of the box on Mars will change accordingly – from first attributing a probability of 50% to either option as well, you now will move to attributing a probability of 100% to the possibility of it containing a green ball. This is the ‘collapse’ as it happens in ordinary probability theory, and it’s nothing mysterious at all.
However, quantum mechanics isn’t ordinary probability theory, but rather, a generalization thereof – or I should be more cautious and say, mathematically identical to a generalization thereof; what, exactly, quantum mechanics is in an ontological sense is still open to debate (but then again, the same can be said of probability theory). So the story is not quite the same, mostly because you can’t a priori assign either the red or the green ball to either box, just waiting to be discovered. But essentially, within its framework, the phenomenon of entanglement is not any more puzzling in principle, but straightforward.