35x12.50R17 is 0.09" taller than 325/70R17, a +0.25% change in diameter, inside the 3% range most shops treat as a safe swap.
Ground clearance changes by 0.04" (half the diameter change), and the tire needs 0.04" more room above it.
325/70R17 is 0.30" wider. On the same wheel offset about half of that, 0.15", moves toward the suspension and half toward the fender.
Both fit a 17" wheel; the sidewall is 0.04" taller on 35x12.50R17.
Details: 325/70R17 in inches · 35x12.50R17 in inches · change sizes in the calculator