I would hit a 6 iron into the centre of the green.

Remember Todd, the obstacles in front of the green don't exist (I know they're really there, but it is a par 3 after all), and when you say the green is only 160yds, then you should easily reach this with a 5 or 6 iron. If the obstacles are about 110yds, then you would probably clear this easily with your 9 iron, so it is likely to be confidence and direction off the tee that makes you tremble.

However, you are also right to consider course management as this will help you improve on your overall game. If it takes you two to get on the green, and two putt. It's still only a bogey, (net par or birdie) depending on your handicap, so this is still good. If you did this on every hole, you would definitely score under 100. Food for thought, eh!

Cheers.
Lee.