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I'm building an iOS 8 iPhone app that lets user upload photos to Facebook. Can I set the term Facebook as a keyword for my app in iTunes Connect or will that lead to a rejection by Apple?

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You shouldn't use trademarked words as keywords for your app:

When choosing a keyword, don’t use competing app names, company or product names, or trademarked names. Avoid inappropriate or objectionable terms or irrelevant words such as celebrity names; all keyword submissions are reviewed by Apple.

Source: iTunes Connect Developer Guide: First Steps: Identifying Your App in iTunes Connect: Set Up Searching and Browsing: Keywords: Get the Best Results; emphasis mine.

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