...but wouldn't a hold be a better option for ATC?
With respect to ATC, but when you have an engine you should really be insisting on getting what is easiest for you. However, my experience with ATC is that they'll do all they can to help whenever you have a problem. And this should also be reflected in the sim. I've been taught that the sim. is "real" and you should act in the sim. the same way as you would on line. To come out of the sim. and say "But in real life I would..." is not acceptable.
PM