IF either of these kids (doesn't matter which one) touched the other one in a sexual manner, that probably means something wrong is going on at home.
No doubt, this will end up in their permanent record, and the kid will be branded as a deviate (especially because the contact was with someone of the opposite sex.)
Of course, he will be branded the evil one, no matter who initiated contact, and this will follow him the rest of his life.
Wonderful.(/sarc)
I recall playing "doctor" with the little girl next door when we were both 5 years old. I don't really think these was anything wrong going on at home. I think it was more just a case of curiosity (as in - how come you've got a little butt in front?)
I see from your ignorance that you have not spent any time around kids.