Correct float setting for this backup sump pump?

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I just installed this Zoeller 508 backup system to pair up with my existing M53. The trouble is, my sump pit inlet pipe comes into the pit relatively low. If I follow the Zoeller install recommendations they prefer maximum float travel to minimize short cycles on the backup pump, but that would mean my inlet pipe would be totally underwater. I set the "on" float position for the backup to trip just as the inlet pipe almost fills at the pit location. I'm not an engineering expert, but I thought I read somewhere about hydrostatic pressure causing issues from too much standing water in the drain tile system.

So, the way I see it, I'm left with 2 options:

1.) Let the pit fill as much as possible without worrying about the inlet filling since this will only be a rare case in a "backup" situation.
2.) Keep the water from rising beyond the top of the inlet pipe by setting the "on" float as I currently have it in this picture

Thanks for your input!
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