A raw AAC file has no container, so some players cannot seek in it or read its tags. WMA plays in old Windows software and some older portable players. AAC is at home in efficient audio for streaming and video soundtracks; WMA is the usual choice for legacy Windows music libraries. Both formats are lossy, so the content is compressed a second time; start from the best copy you have.
The defaults suit most files. Under Options you can choose the bitrate and trim the start and end.
This pair uses the compatibility engine, ffmpeg built for the browser, because WMA cannot be written by the browser's built-in codecs. It is a one-off download of about 10 MB that the browser keeps, it is slower than the built-in codecs, and it takes files up to 1 GB. WMA is written at 128 kbps unless you choose another bitrate.