A 32-week preterm male neonate is delivered by emergency cesarean section for fetal distress. At 1 minute, the baby is pale and limp, with no spontaneous respiratory effort, a heart rate of 60 bpm, and no response to stimulation. At 5 minutes, after initiation of positive pressure ventilation with 100% oxygen and chest compressions, the heart rate is now 110 bpm, the baby has some spontaneous breathing, and there is minimal muscle tone with grimacing to stimulation. What is the APGAR score at 5 minutes, and what is the clinical significance?