This is an interesting choice... I'm really tempted to go for the morale bonus. We're going to need morale for NC. Cally's turn is next, are you able to conduct repairs?
I have a repair, but then we already have two damaged locations, and two basestars about to jump in... it's a tough call. I'll leave it up to you, but if you choose the second option we will all have to manage ship damage very carefully for the next few turns. I think using a nuke would probably be essential.