The thermostat begins opening at the stamped temp and is fully open 10 degrees warmer than the stamped temp, most factory thermostats that I have pulled were stamped 195 but a 187 and a 175 are both available at any parts store.The thermostat in my 5.3L is stamped 187 Deg, dash gauge matches fairly close
The thermostat is using the water temp at the thermostat housing, if the sending unit for the temp gauge is close to the thermostat the gauge will read very close to the thermostat rating but it is not uncommon for the sending unit to be located in a head or block water jacket which will usually report a higher temp than the thermostat housing.
What really matters is whether the temp range is consistent, if it is the Coolant system is functioning as designed; if the temp swings are greater than 10 degrees it probably means the radiator core is not flowing freely, the water pump is weak, the fans are not working properly or the air flow is restricted; watching your temp gauge closely enough to spot small variations will enable you to correct issues before they become bad enough to overheat and damage something