From what I've been told law schools will take your highest score (although they are able to see all of your scores that you have taken).
You have a few options;
A). You can retake the exam for the third time and risk getting another below 160 score.
B). You can opt to not take it again and apply as early as possible in the application process
C). You can retake the exam for the third time, but only after taking the proper time to study sufficiently enough to allow you to consistently test in the 170+ range. (which probably means you wont be applying this cycle).
BTW... what was your GPA?
If it's above a 3.8 I'd opt for plan B. Remember, your 160 has not suddenly been devalued. It still holds it's weight as a 160, a 160 that YOU showed capable of achieving. If you GPA is below 3.8 then I honestly would opt for plan C. But that's just me... I'd do just about anything to get into the T14, even if it means sitting out for an entire cycle. Think of it this way, if your LSAT isn't desirable for the school in which you are applying, would you rather go to a less than desirable law school and graduate in three years, or would you rather BUST YOUR ASS for an entire year, sit out with the benifit of knowing you'll be attending a T14 school?