Should I pure just Roman shades and what about upper window?

You could have top down/bottom up Romans, starting at the top.(perhaps even outside mounted above.)

Remember that fabric selectionis SO important.

Thank you for suggestion. I am a little confused what would I do with the upper window. Should I leave it without shades?

If you could show us a picture from further back that captured the whole window, people could give you better ideas.

My vote is for drapes. Keep in mind, when Roman shades are down, they are basically a flat piece of fabric.

I would go with drapes on a beautiful rod mounted close to the ceiling to show off the height. Hand drawn grommet panels are my favorite but can be awkward to use on a daily basis. I would add working Romans installed inside the window frame to give you light control and privacy. Good luck. You have a beautiful room to work with.
Tara from changes by design Winnipeg

Including the top windows, but having a Top down/bottom up Roman shade would be the best of both worlds! This way you have the ultimate in light/privacy control!