Polarization observables in the (4)He(e-->,e'p-->)(3)H reaction are calculated using accurate three- and four-nucleon bound-state wave functions, a realistic model for the nuclear electromagnetic current operator, and a treatment of final-state interactions with an optical potential. In contrast to earlier studies, no significant discrepancies are found between theory and experiment both for the ratio of transverse to longitudinal polarization transfers and for the induced polarization, when free-nucleon electromagnetic form factors are used in the current operator. The present results challenge the current interpretation of the experimental data in terms of medium-modified form factors.