What If Build Ideas...for Land Speed Racing
The Big Red Camaro with it's 850hp version back in the day ran a top speed of 222 mph and average of 198 mph at the Silver State Challenge.
I'd build the safety to be able to run 200+ mph, but engine wise run what you got see what it does and like you said work out the bugs and go from there, can always go up in steps like 25 mph better than previous year.
I wouldn't worry about the 200 mph engine for now just focus on what you got and the First speed limit hurdle you have to pass to be able to run the next level. And then plan from there, you'll have a better idea where you need to go.