Step 1: Use the inradius formula.
\[
r = (s-c) \tan\frac{C}{2}, s = \frac{a+b+c}{2}
\]
Step 2: Apply the half-angle formula.
\[
\tan^2\frac{C}{2} = \frac{(s-a)(s-b)}{s(s-c)} = \frac{7}{9}
\]
Step 3: Solve for $c$.
\[
s = \frac{9+c}{2}, s-a = \frac{c-1}{2}, s-b = \frac{c+1}{2}, s-c = \frac{9-c}{2}
\]
\[
\frac{7}{9} = \frac{(c-1)(c+1)/4}{(9+c)(9-c)/4} = \frac{c^2-1}{81-c^2} \implies 2x^2 + 3x - 1 = 0
\]
\[
7(81-c^2) = 9(c^2-1) \implies c^2 = 36 \implies c = 6
\]
Step 4: Compute $r$.
\[
s = \frac{15}{2}, s-c = \frac{3}{2}, r = \frac{3}{2} \cdot \sqrt{\frac{7}{9}} = \frac{\sqrt{7}}{2}
\]