Make sure to check with your instructor on the style they require for the given assignment.
If you're writing a complex document citing source types (books, ebooks, database articles, newspaper articles from online databases, etc.), choose the Advanced project level. Otherwise, the Intermediate project level should suffice.
In NoodleTools, a project can be converted from one level to another. Next to the project's listing on "My Projects" page, under the Options menu select "Change level."