Retarded Kennedy Sister Dies at 86 Jan 7, 11:39 PM (ET) By LOLITA C. BALDOR (AP) The Kennedy family children are seen in a boat in this undated photo. From left, are: Eunice, Jack,... Full Image WASHINGTON (AP) - Rosemary Kennedy, the oldest sister of President John F. Kennedy and the inspiration for the Special Olympics, died Friday. She was 86. Kennedy, the third child of Rose and Joseph Kennedy, was born mentally retarded and underwent a lobotomy when she was 23. She lived most of her life in a Jefferson, Wis., institution, the St. Coletta School for Exceptional Children....