Wound up, relatively speaking? That's better (1,3,5)
I believe the answer is:
a cut above
'better' is the definition.
(thesaurus)
'wound up relatively speaking?' is the wordplay.
I cannot really see how this works, but
'wound' could be 'cut' (cut is a kind of wound) and 'cut' is found within the answer.
This may be the basis of the clue (or it may be nonsense).
'that's' acts as a link.
Can you help me to learn more?
(Other definitions for a cut above that I've seen before include "Noticeably superior to" , "Something superior" .)