If it's not PHYSICAL cheating, is it STILL cheating?

this isn't anything from my life but it happened to a friend of mine a while back, and I just want to see what people think about this.

people: Girl, Guy who likes girl (call him Gary)- and she knows he likes her but she has a boyfriend and would never cheat on him, Guy2 who happens to be the boyfriend of a friend of hers (not the girl's). Let's call him uuh Jim.

Anyways, Girl doesn't see her boyfriend often because they go to different universities. Gary goes to her school and is in some of her classes and they hang out once in a while- see a movie, go to lunch, etc. Always as friends.

Setting: Girl and Gary watch a movie in her dorm room with the lights out and on her bed (there is only the desk chair and frankly those are really uncomfortable. Actually she has a roommate but she wasn't there at the time). There is no physical contact, they are just watching the movie in the dark alone in there.

I can't obviously say 100% that absolutely nothing more than friendly happened of course since it didn't happen to me and I wasn't there. But I knew the situation quite well, she was a good friend who I know quite well, and since it was a while ago, even if she didn't tell me then, by now she would've told me if more had happened.

Meanwhile, Jim (who is visiting his own girlfriend, who is not me, but another friend of ours; and who also happens to be quite insecure about people cheating on him), INSISTS that Girl is in the wrong and cheating on her boyfriend - not even in the physical sense. He insists that just being alone with another guy in the dark room, watching a movie, is in itself cheating, and that somebody needs to tell her boyfriend about this.

Now, do you think Jim is right? Is she in the wrong? Why?

p.s. She did at that time, as it was first year, feel doubts about her long-distance relationship and was open to the idea of meeting new people, but she would also have never actually cheated- basically acted on anything while still in a relationship. (In case this information sways your answer.)

I've added a poll since not everyone who reads this will feel like writing out an answer, but if you don't necessarily agree with the poll options, or have more to add, feel free!
Yes, being in that room was cheating
Vote A
No, being in that room was NOT cheating
Vote B
Not only being in the room, but in general hanging out with this guy so much, knowing he liked her, IS cheating
Vote C
Select age and gender to cast your vote:
+1 y
by the way, I just want to say, please try to see this in an outsider perspective, which I guess is also mine (I have had friends who have cheated, and I do not condone cheating), and not thinking of how you would feel if she was your girlfriend (biased)
If it's not PHYSICAL cheating, is it STILL cheating?
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