Back when I was preggers Texas was the C-Section Capital... more done here than anywhere... it's so much easier for the doctor to schedule their day if they just have to have you come in, do the surgery, then go back to golf... as opposed to hours and hours of unpredictable labor...
I was induced with my son, ended up emergency C-section... I think we could have avoided that, but there it is. With my DD, the doc assumed C-section since I'd already had one. My sister, they did the sonogram and predicted that KK would be a 12+ pounder so they forced my sis to have a C-section (while scaring the crap out of her BTW) so she did... and then had to have them with her other two. KK came out weighing 8l14o... big, but not worth the scare they gave her IMHO. Her third/last was just in December... and there was a problem. The incision inside had trouble, then there was bleeding issues... not going to elaborate, but it was scary and extremely painful since the epidural had worn off. Regular birth = NO cutting, so this particular problem could not have happened with regular birth. If I'd known this was a threat I would have fought to have my second the regular way... scary!
Then there's my SIL... she had both hers normally... eldest was in Kansas and that was a mess... teaching hospital all I'm going to say... second went off without a hitch. She came home and did her thing... and saw other women in her neighborhood that had elected for C-sections and felt sorry for them. Mainly because of the healing, but also because several babies ended up with jaundice... like my eldest did... not that big a deal, but one more worry isn't fun... and it's fairly common... something about being squeezed prevents it, so babies that don't get that squeeze treatment...
Also, if you elect to C-section they tend to plan it for before your actual due date, so that they don't have to worry about you going into labor and throwing off their schedule. It complicates things for you and baby too. With my DD they scheduled me for two weeks before my due date. She came out only weighing 6l8o... (son was 8l2o) and her lungs weren't fully ready so she was in NICU... I'd gladly go through days of labor to have prevented that.
C-sections are tough. Your body is NOT prepared to heal from it the way you are a regular birth. It's abdominal surgery. You'll be walking hunched over for a while... no driving... no lifting anything heavier than the baby (and that's a strain let me tell you), you need drugs for the pain -not good for nursing-.... if you've got a hubby, mom, friend, etc that can be there 24/7 to take care of the baby completely for a few days/week then you'll be okay... but trying to do all that you have to when you're recouping is HARD.
In your shoes I think I would ask to take that test again, and this time be very careful to make sure it's accurate (I can't believe the goobs didn't warn you about the fasting sheesh!)... if it turns out your diabetic, then go from there. But if you are not, then YOU do what works for you. If you want to avoid the pain of labor, but deal with days of pain in healing, then go with the C-section. If you'd rather go natural, and heal faster, go with regular. But if there is no reason for concern then it should be your decision. Your body, your baby.
Congrats and Best of Luck!!