Suggest among these two sony vaio models

http://www.sony.co.in/product/vpceb24en

Intel® Core™ i3-350M Processor 2.26 GHz*1
3 GB DDR3 SDRAM *2 (upgradeable up to 8 GB*3)
Rs. 40,990 /-
http://www.sony.co.in/product/vpceb1agg

Intel® Core™ i5-520M Processor 2.40 GHz with Turbo Boost up to 2.93 GHz *1
4 GB DDR3 SDRAM *2 (upgradeable up to 8 GB*3)
Rs. 52,490 /-

I use the laptop for office purpose, mainly programming, browsing, watching movies...... I never play any games. Among the 2 mentioned models the only difference I see is processor, RAM, but there is huge price difference.
One of my friend said that i3 processor is slow and it is the low range processor available in the market today. He suggested me to go for i5 processor.Is it really worth the extra bucks??????
Also I found the second model in 14 inch screen with same price but with 3GB RAM instead of 4GB RAM. Is it worthy to sacrifice 1GB RAM for a compact 14inch screen??? Also apart from processor and RAM what are the other specifications I need to consider before buying a laptop?
Also is Sony Vaio the best for Indians or should I look for any other company laptops like Lenovo, Dell.......
Plz answer my queries, Thanks.

Intel Core i3 and Core i5 processor are dual cores and support hyper-threading and virtualization. But Core i3 products lack Turbo Boost feature which is not the case in Core i5. In general, Core i3 processor is often compared with lower end Core 2 Quad products; whereas Core i3 processor is equal to mid-range Core 2 Quads and high-end Phenom II processors.