The final format option is the Enable file and folder compression setting that is unchecked by default, which I recommend sticking with.
The file and folder compression feature allows you to choose files and/or folders to be compressed and decompressed on the fly, potentially offering a considerable savings on hard drive space. The downside here is that performance can be equally effected, making your day to day Windows use much slower that it would be without compression enabled.
File and folder compression has little use in today's world of very large and very inexpensive hard drives. In all but the rarest occasions, a modern computer with a large hard drive is better off utilizing all the processing power it can and skipping on the hard drive space savings.