umm i hardly think one C+ in grad school is going to raise the eye of many admissions committees when people with multiple Cs and much lower gpas get in to medical school without their grades being discussed in detail.
I'm not sure about the 3.7. I got a 3.4 in grad school due to the exact same thing happening to me with the group presentations...twice. $%%#* group work. Anyway, I've had six interview invites (out of ten apps). I went to three interviews of the six, and have had one acceptance, one waitlist, and one pending decision so far.