I take it the unit on the floor is the ac? I would suggest simple panels that would work color wise in there, repurpose the floral decals on the walls so you could come out about 12" with the rod on either side of the window. That way when you open them, they won't be gathered so close to the unit, won't look cramped, will maximize the amount of light and the windows will look finished.

I suggest a beautifully modern printed panel for the curtain.

Drapes are the best and A Quick Fix for these windows and do move the decals.

Thank You! and the furniture is photo shopped in actually.

Simple panels on the side. They do not need to close and then add bamboo drop down shades that fit the windows. If privacy is an issue. Home D sells a window film that self sticks and is removable and repositionable and you can cover the bottom panes or both panes until you can gather your thoughts and choose what you really love.

Good luck.