Hello,
projectseven20. I myself was an undergraduate transfer within the U.S. system, and I can tell you that your final G.P.A., the one earned from the degree-granting institution, is the one that you should report: 3.35 it is, then. Since you have to submit all transcripts, the admissions committee will be able to see that you had earned higher grades at your first institution. I found myself in a similar situation. Although I did not carry a perfect G.P.A. from my initial institution, I was in the 3.9s; at my second school, I was in the 3.7s. I, too, wished I could mash the two together and walk away with an increased hybrid G.P.A., but such was not the case. My guess is that if your second institution has a greater reputation, one that encompasses academic rigor, the 3.35 will not be held against you. If you think it puts you on the back foot, then you can always address the gap in an essay or supplement.
Good luck.
- Andrew