I don't have a PS3, so I'm going to ask - what is the other option for cables? Is it left/right analog RCA plugs? If so, then yes - the optical cable should blow those away.
The Radio Shack cable should work just fine. Monoprice is selling their
6-foot premium optical cable for $3 today if you can take the other one back and care to save some money (assuming the RS cable cost more). Either should work just great, though.