3 wood or 16* hybrid?

A lot depends on your swing speed as well.
A fastish swing speed will actually see little difference between 3 wood and 16 degree hybrid. The design of the wood adds spin to the ball. A fastish swing will add more, reducing the overall distance. A hybrid of a similar loft, although having a shorter shaft, doesn't put as much spin on the ball thus increasing the overall distance.
A slower swing will see bigger differneces between wood and hybrid of similar lofts as the extra spin from the wood keeps the ball in the air longer.
Also take into account that, generally, lower lofter hybrids are more difficult to use unless you are a strong player.