Good job Blonde-
The ISO setting is just like film speed. You have a few to choose from. If you go with a low setting your grain and clarity will be good but, you need a lot of light. If you set it higher, you will not need as much light but, your grain and clarity will suffer a little bit.
I would recommend shooting at the highest quality setting because you can use the additional resolution to your advantage. If you want to crop a photo, additional resolution is needed for the part you are cropping out..............the same goes for many editing functions. You can always knock the file size down later if you need to but, you can't boost it up very well. Beautiful stuff.