Recommended option is to set on Redis. Redis put cache in RAM memory.
This option is very important to be enabled, especially when serving dynamic pages that require repeated calls to the database. When a page is fully cached, it is served as static, and therefore this option is not used.
Turn this option ON.
The status must read both Memcached Extension Enabled and Redis Extension Enabled, as well as Connection Test: Passed, as shown in the image above.
Memcached and Redis are enabled on PHP version 7.4+.
Leave the rest of the options as they are by default.