No, USC has never played a "Division II" football team.
USC has played six games against current Division I-FCS teams, and is 6-0.
USC has played 62 games against current Division III teams, and is 45-10-7.
It's important to note that most of these games were played prior to the modern divisional format of the NCAA.
University of southern California
7 ... University of California Berkeley, Fresno State, San Diego State, San Jose State, University of Southern California, University of California Los Angeles, and Stanford University.
souther Utah is a division 1-AA football school
Football
University of Southern California
University of Southern California
The University of Tennessee at Chattanooga plays Division 1-AA ball in the Southern Conference.
University of Southern California
University of Southern California (USC)
2
11
Alabama claims 12 National Titles while Southern California lays claim to 11.