Side yard slopes towards house
My narrow side yard slopes towards the house. In fact, before I did some emergency excavation, the grade was above the foundation sill in the back corner. There is also a very gentle slope parallel to the house from back to front. The attached photo shows the view towards the back yard. The distance from the house to the fence is about 14.5 ft.
I know I need a retaining wall, but I'm not sure how far away from the house to put it. Options that I've considered are:
1. Build it close to (~4 ft from) the house and put a walking path along the higher ground to the left of it.
2. Build it close to (~4 ft from) the fence and put a path along the lower ground to the right of it. (The wall would curve towards the house at the foreground and background edges to minimize interference with the roots of the two large trees.)
3. Build it as in option 1 and install a deck between the wall and the house, even with the grade at the top of the wall. (This would also allow me to replace the middle window with a door.)