If your scanner is reading 195*, that is likely what the temp is. Very unlikely the ECM temp sender is reading incorrectly as well, especially since it is higher up and less likely to be in contact with coolant if there is a problem with air in the system or lack of coolant. (in which case it would read low since air doesn't conduct heat well)
Gauge isn't a precision instrument, and I will say that unless a mechanical is tested, they too are no better than stock or any other electric.
If the gauge is steady and consistent, albeit off by a few degrees (tested via the scanner), you have a few options. My top two would be go get another stock gauge from the wrecking yard and swap, or live with it, knowing your coolant temp reading is off by X degrees.
If you really dig into it, you'd have a pretty good chance of finding that the volt and/or oil pressure gauges aren't precise either.