Free Step Dodge

If you're a series Vet, Hard. Otherwise, Normal. RE has a lot of BS that may frustrate/catch you off guard on a first play through, so being on Normal will give you more leeway in dealing with those things. Honestly, they're not all that different. You'll only notice a big difference in 3 parts of the game, if you're like me.
PS: Is that Jora?

Honestly I recommend Normal. Going back through it because the difficulty achievements don't stack was incredibly boring to me. Get it done and out of the way first. It'll also help you plan out your upgrades for higher difficulties when you see the mission progression. It's also more fun when you see the enemy changes when you see the 'easy' version first.