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It's an art, not a science. If you have desired outcomes that are determined by obscure choices, crank that difficulty up. If it's all straightforward, drop it down.

Unless it's something like a puzzle game where you literally can't progress without figuring it out, there's not much purposes to the difficulty rating, it honestly could be dropped entirely with no one noticing or caring much. I put a 3/8 by default but it really doesn't matter.