What sort of setting were the flaps failed on? If it was a first stage and the runway was short, yes, go-around. If it was an intermediate stage, how sure are you that you have go around capability on one engine? Opening up to go-around, say you had a stall/shutdown- would you be commited to hitting the ground on one engine? What is the single engine landing procedure for this type- does it use full flap or intermediate flap? If it uses intermediate flap on one engine, what is the problem with continuing to land with intermediate flap? You were 3 miles out and visual, how critical was the runway? All to be weighed off in seconds! I suspect adding a speed margin and putting it down would be no problem.