installing update 3.5 on a new HD via USB

I installed a new Samsung 2 tb HD in my ps4. I then downloaded the newest update (3.5) from the playstation page and put it (PS4UPDATE.PUP) on a USB in a folder named "UPDATE" in a folder named "PS4." When i boot the system up in safe mode, it says the file cannot be used. I have followed the instructions on your web page to a T, the USB is formatted FAT32 and I boot in safe mode. Do I need to use an earlier version than 3.5?

Thank you