I have a Genesis Address Level 1 with total balance of 32000 MNE, if I upgrade to level 3 will I be able to immediately transfer this 32000 MNE to an exchange?
No, you won't. If you upgrade to level 3 you will have the option of mining MNE tokens at a specific rate. You can get about 2 MNE tokens per day per genesis address (to receive all 32000 MNE tokens, you will need about 50 years). You can learn more about upgrading your genesis address
here.
I suggest you just forget about it because it will never pay off.