If you have the rsh set up to allow passwordless connection from SERVERB to SERVERA, and the rmt program on SERVERA, you could use
SERVERB> tar xv --file user@SERVERA:/dev/rmt/3m file25
where "user" is the required userid on SERVERA.
If you don't (or can't - it's a security hole) have rsh set up, then "B)" is closest to what you want. To avoid checksum errors, you might have to specify the blocksize on the dd command (for example, bs=512 if the tar was created with 0.5k blocks). To extract only file25, just add "file25" after the hyphen, so that tar command becomes "tar xvf - file25".
Are "tar" and "/usr/bin/tar" different? Run "which tar" to see the default (you may have Posix and non-Posix versions of tar installed). It looks as though the one fiound first in the PATH works better than /usr/bin/tar.