Correct. Either upgrade to 4.x first or uninstall 3.5 and then install 5.x. Please remember to obtain your new license keys first.
Your local Symantec reseller will be able to assist you with correct product names/license keys to apply for. If your maintenance is up to date, the new license keys will be free of charge.
The product installation guides will guide you through the upgrade process, including unencapsulation of the boot disk. All installation and product documentation can be found here: http://sfdoccentral.symantec.com/ and https://vos.symantec.com/documents
Please also make use of the upgrade assistance offered on VOS: https://vos.symantec.com/home
Use this site to:
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Determine if your systems are ready to install or upgrade
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Download, search, and set up notifications for patches
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Search for error code descriptions and solutions
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Check product and system configurations for upgrade readiness and risk exposure
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Gather license and product information
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Get the latest information about your SFHA and VCS products
I'm pretty sure you will have to upgrade VCS as well. Depending on what you are clustering, the changes to VCS should be minimal. Again, your local reseller as well as Symantec Support (and this forum) will be more than willing to assist and guide you through the preparation and upgrade process. CHANGE IS GOOD!