The ignition timing on a BMW 325i is computer controlled. In other words, there is no way to set the correct ignition timing. Ignition Timing relates to when the ECU triggers the coil to fire the spark plugs; inducing combustion. Since on this particular model of BMW there is no way to control timing manually (in fact ignition timing on this vehicle is not checked during the smog inspection), the specific description of the fault probably includes some other detail which is not indicated on your VIR report.
If the smog technician indicated ignition timing on the VIR report, in writing, perhaps your BMW is suffering from a misfire or a component relating to spark plug ignition is disconnected or defective; and for that reason the technician has mentioned ignition timing. Without seeing your vehicle first hand (conducting a diagnosis) o r at least reviewing your VIR report in its entirety, we are unable to comment of the specifics of your BMW's ignition fault.
We recommend obtaining a hands-on diagnosis from a reputable smog check repair station in order to find out the specif reason(s) for your BMW's smog check failure.