Not Ranked
Personally, I would stay with the 3.07. I have the typical 3.31 and I'd prefer a higher (lower numerically) gear than that.
The TKO-600 has a fairly low 1st and 2nd gear ratio already. Going to low (and 3.5 is TO low) will add to additional traction issues.
Consider this, many many "Cobras" run a 12 second quarter, don't care how big your motor is, how much h.p./torque you got, your going to be in the 12's. Why? TRACTION, you can't get it without serious tires. BUT, a higher gear ratio is a BIG step toward getting a handle on it. Most Cobra's are easily in the low 11's, dare I say even the 10's, IF they could actually get out of the hole from anything greater than idle speed because of wheel spin!
By the way, a .6 or a .8 over drive on that TKO?
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