I have mixed feelings about this statement. To some extent, it is true. Many internships/residencies in the match (especially academic programs) use GPA (and some GRE) as an easy cutoff, and 3.5 is a generally recognized target to be a "competitive" applicant. However, you can definitely still match with lower, or if you're going into a smaller field (lab animal, ophtho, path, zoo), it is FAR more likely that your connections are going to speak louder than your grades. With those specialties, everyone knows everyone, and if you've got someone strong gunning for you and solid experiences in the field, you've got a good shot even if your GPA isn't your strongest attribute. (My GPA is certainly less than 3.5, and I'm very happy about where I ended up.)
That said, if you're going into private practice and have NO intention of doing an internship, C (+ NAVLE) = DVM. The job search levels the playing field - practice owners are definitely going to be more interested in who plays nicely with clients, staff, and other associates than who lived inside their textbooks and asked the most questions in class for 4 years.
Oh... and happy St. Patty's Day!