How important is grad school GPA?

<p>I am in a PhD Program in the US (just finished my first year). I have a 3.55 GPA because I performed poorly in one class in my first quarter. I have been offered a prestigious scholarship in the UK for a one year MPhil Program. Unfortunately, I will not be able to take it up this year because I have to complete another year in the US (finish coursework and prelims) before I can take the year off. The funding in the UK is being deferred but I have to apply for admission to the program again. </p>

<p>Now here is the problem: The program website says that a minimum GPA of 3.85 is needed to apply to the MPhil program. I had a 3.97 as an undergrad, have published two papers and performed fieldwork so my CV references are strong. I am concerned about the 3.85 stipulation. With my grad GPA as a 3.55, is it even worth applying? I don't want to let go of the scholarship because it is a big deal. But if my GPA is too low, is it even worth the risk? On the other hand, maybe the GPA requirement is for undergrad GPA, since this is an MPhil Program. I have E-mailed the program, but am yet to hear back. Any thoughts?</p>