I would like to see the pic of your dyno sheet.
100HP @ 3500RPM that seems to me correct, anyway, the maximum HP that this engine produced, is located around 3800-4000RPM, you would have probably made 110-115 HP @ 3800RPM, after which, the HP start has to go down, its the way which this engine is built.
Never a stock TDI VW engine will produce more HP at 5000RPM than have 4000RPM, if it is the case, it have there a big tuning problem in the low RPM, it's not a myth, it's a mathematical fact.
To produce HP, to some extent it is necessary to multiply the torque by the RPM, the maximum torque in a TDI is approximately at 2000RPM, after which it starts to go down, and it remains about it enough to 5000RPM to produce much HP.
It is easy to see whether HP VS RPM are correct, in all engine, gaz, diesel, motorcicle, 2 stroke engines, etc.........at exactly 5200RPM, the number of HP (in HP) will be always equal to the number of torque (in LBFT), in a dyno sheet, the curves always will cross to 5200RPM, in all engine.
Which is your car?
For your tach, it is normal that it is erroneous in a MK1/2, the ratio of alternator TDI pulley are not the same as the 1600D/TD, to have a good reading with a AHU in a MK2, you must fitt a tach of 1.9 AAZ, or, installs the complete system of belt, alternator, etc... of 1.6 on your engine.