Hi. Sorry to hear about the score. What schools are we talking? What is their average scores?
While there is no hard evidence indicating that schools are looking at the IR scores, IR 1 is likely to raise a flag, and I would send in 700 with IR 6 since you are only 10 points off.
Just as an FYI - you theoretically can take it one more time since the score you submit on the application can be self-reported and you can take the GMAT up to a day before the application deadline. The official score does not have to hit the school, so if you wanted to retake one more time, you theoretically could (if you are physically/mentally able to).