Competing with your friends is natural. Rooting for them anyway is character.

Wanting to beat the people closest to you is not a fault in the friendship; comparison is automatic when you are in the same race. The real question is what happens when they win. Being glad while you are losing is a separate skill from competing, and it has to be practiced on the actual day.

When a friend gets the spot, the grade or the part you wanted, say congratulations first and in person, before you deal with your own disappointment. Handle the rest later and privately. Keep training to beat them, which is the honest form of respect.