If you're downloading it now, it'll recognize the latest SDK, so 4.3.3. Not that the last .3 really makes any difference over 4.3…
Yes, 3.1 would still be supported—you just have to change the deployment target. Plenty of info about that around here. You don't need to uninstall the old version—it'll be displaced automatically. You could though if you have no need of Xcode 3 anymore.
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