It was a little hard for me to write on the fabric, that is why the numbers are messy. The stitch next to the arrow is the setting I think is the best.
In my opinion, you have chosen a seam with oversized stitches. I would prefer any of the last four options.
After watching your next video on applique sewing with the tails I understand now why you prefer the narrower stitches. I think I'll use the stitch three to the right from the arrow, which is 2.5 x 2.