Re: transom height?
No doubt I agree, it is trimmed up too high. try dropping it down 2 slots or holes in the transom bracket. Don't drop the pin in the lake!!! Do it on the trailer. It won't porpoise and it won't stick the bow up when you give it throttle. It will also feel much safer at high speed. If you trim it down too low, it will push the bow down and lift the back up making it hard to control. Porpoising for sure is caused by the motor trimmed to high or too much weight in the back of the boat. A 35 seems like too much power for a 12 ft. boat unless it's pretty heavy though. That could be the problem. If your cavitation plate is parallel to the bottom of the boat, that should be the correct position. If it is, then too much weight in the back or too much power for the boat.
Just my experience anyway, and I've never been lucky enough to have a wooden boat.
JBJ