Yeah, in the theme.xml, (Path should be /etc/emulationstation/theme/theme.xml, the theme you are using is the folder you go in.) Open the theme.xml and in it change the font size to a higher value, for a 3.5 inch screen. try 0.10, (sorry never used one of those screens.) Experiment with a size that works, hope this helps

<textlist name="gamelist">
	<fontPath>./art/OPENSANS.TTF</fontPath>
	<fontSize>0.04</fontSize>
	<horizontalMargin>0.01</horizontalMargin>
	<!-- <scrollSound>./art/sound.wav</scrollSound> -->
</textlist>