Replace the sensor (easy). Check the wiring harness connector for corrosion (common). If the connector is badly corroded, GM sells a connector that can be spliced into the harness. Before installing the new sensor, put a small amount of silicone dielectric grease in the connector cavitiy to prevent future corrosion.
I recently replaced the sensor on my 1999 Corvette. The part, purchased at my local Chevrolet dealer, was labeled, "Made in Mainland China".
Move to a cooler climate, where the temp indicator will be correct more often.
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