What is the meaning when it is said "Temperature of an Oxyacetylene Torch is 3500 degrees Celsius"?
Oxyacetylene is a mixture of acetylene (ethyne) and oxygen (not air). The mentioned temperature of about $T=3500\ \mathrm{^\circ C}$ is the adiabatic flame temperature for the combustion reaction of acetylene and oxygen.

An adiabatic process is one that occurs without transfer of heat. The adiabatic flame temperature is a theoretical temperature, which would be achieved in a combustion system in which there are no heat losses (e.g. no radiation losses from the flame). Note that this cannot be achieved in a real flame; therefore, adiabatic flame temperatures are calculated values.

The heat $Q$ released from the combustion reaction of acetylene and oxygen is the heat of combustion. If all of the energy released by this chemical reaction is used to increase the temperature $T$ of the products ($\ce{CO2}$ and $\ce{H2O}$) with no heat losses, the resulting adiabatic flame temperature can be calculated from the heat capacity $C$ of the products.

Hence, the adiabatic flame temperature represents the maximum possible theoretical temperature for a particular fuel/oxidant combustion.