32-bit means it can only see 2^32 (2 to the 32nd power) = 4GB memory spaces.
The computer has to be able to see the RAM + VRAM + other devices on Motherboard, etc.
e.g. If you have 1GB VRAM and other devices takes up 0.3GB, you will only be able to use a max of 2.7GB (4 - 1 - 0.3 = 2.7) .
In this case, if you install 3GB, you waste 0.3GB if you install 4GB you waste 1.3GB!