The main difference between multiuser networked runlevels (in RHEL-based systems) are the services they launch on startup.
Runlevel 3 is virtually the same as runlevel 5 (assuming you are using default settings), except that the latter will also bring up the graphical window server (X11).
It does not need a reboot; the same way you do not reboot your computer when you start or stop a system service.
If you go from runlevel 3 to 5, it won't cause any harm to the current users or processes. However if you do it the other way around (from level 5 to level 3), all applications running on X11 will basically halt.