Baby measuring Big. Advice needed.

So I have GD and my baby had been measuring at 97th percentile. Then after a lot of diet control (read starving) then starting on insulin I've barely gained any weight and the baby is now measuring at 95th percentile. My Dr. suggests a C sec at exact 38w and not a day after. I wanted to try natural via induction. But she has scared me with the thought of shoulder dystocia and oxygen depreviation and blah blah. So I'm really confused. I don't want to go through the long recovery after a C sec. Plus I also want a normal natural birthing experience. At the same time I don't want to risk anything for my baby. I'm so confused. Any advice based on experience would be great. Thanks!