Makes choice in horrible spot (4)
I believe the answer is:
opts
'makes choice' is the definition.
'horrible spot' is the wordplay.
'horrible' is an anagram indicator.
'spot' anagrammed gives 'OPTS'.
'in' acts as a link.
(Other definitions for opts that I've seen before include "Makes a choice from a range" , "Elects" , "Selects between alternatives" , "Chooses from a range of possibilities" , "Settles" .)