I'd replace the temp sensor on the back of the coolant flange on the left side (driver's side) of the engine first (since its easy to do and you won't lose much coolant if you can get it out, remove the o-ring, and pop the new one with o-ring on it quickly.
But more than likely you need to replace the actual thermostat which opens and closes at different temps on the front of the engine, sort of middle just below the head clear to the right side (passenger side) on the front. You have to remove the hard black plastic housing piece to get to it. You probably want to order a new housing and o-ring when you do it because the housing will probably break.
The sensor on the upper rad hose? No idea what that does, I was wondering that myself.