Hang the rods just below the ceiling for both windows or 1 rod across both windows. And 4 panels either way.

Love your floor so glad not to see gray floors.

You have nice, deep window frames that are ideal for something that hangs from inside the frame. You also have a lovely view and it would be a shame to obscure it. I would be inclined to put roller shades inside the two window frames. They take up very little space at the top of the window and could be rolled down at night for privacy. If you want a softer or more formal look to the room, you could add narrow lightweight panels at either side of the two windows. They could hang on small rods just above the window frames and the panels could cover just the vertical (L and R) part of the window frame and a bit of the window and the wall. I don't like the idea of a large rod hanging at the ceiling for both windows, or floor to ceiling drapes for both windows. Maybe one of the designers can weigh in on this...

I need to add that there is a step about 1/3 way into the shorter window.

Provided the drapery panels are designed not to close.

Floor to (almost) ceiling panels on the longer window. Because of the step, I'd use a valance or roman shades using same material as the drapes on the shorter window.

Try long curtains on the larger window and a Roman shade on the smaller window. Note the two window treatments in the below images:

Modern Farmhouse Rebuild · More Info

Modern Farmhouse Rebuild · More Info