There are safety concerns about leaving ANY child alone with ANY dog at any time. Certainly the larger the dog the greater the risk would be. Do not leave your child unsupervised with the dog even if you're certain that "nothing will happen" because any animal can have a bad day.
There are safety concerns about leaving a German Shepherd with a three-year-old child. German Shepherds are large dogs, so even if they are just playing could hurt the child.
Young children should never be left unsupervised with any dog. Dogs can injure a child simply while being playful such as by jumping or knocking a child over. There is also always a possibility that a dog may react badly to a childs' attention or physical contact. Always be cautious.
You should never leave a child unsupervised with a dog, regardless of the bread. German Shepherds are natural hearding and guarding dogs. A child becomes more at rish for being hurt when he or she is screaming or making noise.
Pets that are not family pets should never be left near a young child unless it is very carefully supervised. Neither the child nor the dog could be trusted.
You should never leave a small child unsupervised with a dog of any size. Sometimes dogs loose their patients with younger children who pull their tail and ears. It's better to be safe than sorry.
Yes, I would be quite concerned if the dog and child will be left alone together. All dogs are unpredictable and so are three year olds. I would never leave a young child alone with any dog, regardless of breed.