While not as big of a deal as a step failure, a semester failure at a Caribbean school is in fact a big deal. I strongly disagree that talking about it in your personal statement will mitigate the damage. I do agree that, if you choose to continue, the most important thing going forward is doing very very well on Step 1 and 2.
The problem with the "I had some family stuff before finals" excuse is that family stuff comes up during residency too. And during residency it's not grades that suffer, it's quite literally the life and death of your patients. Talking about how you overcame this obstacle is great but it doesn't change the fact that you couldn't handle your business, and PDs will see this. Going to a caribbean school already shows that you couldn't handle your premed business, and now you have shown that you can't handle your med school business either.
I wish you all the best, but I think you should strongly reconsider continuing. You are still early on and have not yet accumulated much debt. I don't have a crystal ball, so it's very possible that if you continue you will match and this will just be a blip on the radar. Just know that your margin for error going forward is basically nonexistent, and the people that have trouble matching out of the Caribbean are those with major red flags (semester failure, step failure, etc.).
