I've never used the Dreadnaught, but I did grind for a long period in the Dunk. In terms of crew both ships hold the same, lvl requirement is close enough to be negligible so both will level same amount at about the same percentage of xp gain.
On paper, the Dunk has better turning force, larger gun space, and greater DP (none of which make a huge difference but just something to keep in mind). The spread on the dunk is rather iffy, even with 120 gunners, however the speed is rather nice and the ship plays fairly well. I would also take into consideration playing style. I am not sure what setup you are using for the KGV, but if you are playing it as a blockshotting 2 turret ship and not liking it, Dunk will not be much different, whereas the dreadnaught will be played as more of a broadside ship.
In terms of range, at BB1-3, there is going to be no quick fix for range (save playing BB1-3 rooms with a KM line, rental or EBB2).
Now if your looking between the two in terms of prizes for the event, my recommendation would probably be to go with an EBB as a dunk could always be purchased later.
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