what settings would you suggest for this to add to backing
track
Does it need any effects? If so, describe why you think it needs effects.
There’s a bit of clipping on that, repairable with Audcaity’s clip-fix …
Possibly you’ve used “clipping” on Audcaity’s limiter, when limiting is the thing for acoustic music.
Acon multiply is a free plugin which works in Audacity on windows, it’s good for acoustic guitar effects … https://youtu.be/T3mbSMW07yQ?t=124s
NB: To get stereo effects you need to duplicate your mono track to make a dual mono version, then you can apply stereo effects, like stereo reverb.