Situation is just too vague to say who's more competitive... Too many questions unanswered, such as:
1) Reputation of med school (e.g., a 3.25 at a top 25 med school is probably a lot different than at a less respected med school)
2) When were the lower grades earned to average a 3.25 (i.e., did the student struggle more with the basic sciences, or clerkship grades...I think most would argue that clerkship grades are more important, especially surgery, IM, completed ortho electives, etc.)
You may have indirectly been asking about the whole Step 1 cutoff issue as well. You can refer to the multiple posts about this to try to answer that.