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Fail. Throughout the 90s, Peugeot's GTIs knocked the spots off any of VW's GTIs. In fact, the 205 GTI was always a better hot hatch than the Mk2 Golf GTI too as far as outright fun is to be considered. No magazine ever brings Mk2, Mk3 or Mk4 GTIs to "best hot hatch ever" comparisons, and when they bring Mk1 GTIs they're always a little disappointing. Everybody brings 205 GTIs and 306 Rallyes to them though. Go figure.
Doesn't matter if it's better or not. It's still not the VW, which is the real GTI. And I wouldn't consider the MKIII and MKIV to be in the same league as the MKV, MKI and the MKII.