Haha, exactly it's so competitive I'm starting to get a little frightened. Just want to make sure I have all scenarios planned out, even if it's a negative view.
Don't be a frightened. It is a really competitive applicant pool these days, but as long as you are smart about the entire process (and research as much as you can), you will get in somewhere eventually. The thing is, there are a lot of applicants that do end up having to reapply. It's not ideal, but it's also not the end of the world if you do either. Many applicants beef up their application and end up getting into better schools than they had originally anticipated. Not only that, you may find that the experiences you have are really awesome and help you grow as an individual. This, in turn, gives you something to discuss in your personal statement or on interviews.
If you don't do well on the MCAT, retake. GPA is a little tricker, but theseeker has given you some good advice. A post-bacc is another option as well.
Get the best grades you can, give your all on the MCAT, and make sure you've garnered some clinical experiences (along with pursuing your own outside interests). Also, I wouldn't actively plan on failing, but be aware that the medical school application cycle can sometimes feel like a gamble and be prepared to try again if necessary.
Good luck to you!