Which isolation level should recommend?

Case Study 3: Litware, Inc
Overview
You are a database administrator for a company named Litware, Inc. Litware is a book publishing house. Litware has a main office and a branch office. You are designing the database infrastructure to support a new web-based application that is being developed. The web application will be accessed at www.litwareinc.com. Both internal employees and external partners will use the application. You have an existing desktop application that uses a SQL Server 2005 database named App1_DB. App1_DB will remain in production.
Requirements
Planned Changes
You plan to deploy a SQL Server 2012 instance that will contain two databases named Database1 and Database2. All database files will be stored in a highly available SAN. Database1 will contain two tables named Orders and OrderDetails. Database1 will also contain a stored procedure named usp_UpdateOrderDetails. The stored procedure is used to update order information. The stored procedure queries the Orders table twice each time the procedure executes. The rows returned from the first query must be returned on the second query unchanged along with any rows added to the table between the two read operations. Database1 will contain several queries that access data in the Database2 tables. Database2 will contain a table named Inventory. Inventory will contain over 100 GB of data. The Inventory table will have two indexes: a clustered index on the primary key and a nonclustered index. The column that is used as the primary key will use the identity property. Database2 will contain a stored procedure named usp_UpdateInventory. usp_UpdateInventory will manipulate a table that contains a self-join that has an unlimited number of hierarchies. All data in Database2 is recreated each day and does not change until the next data creation process. Data from Database2 will be accessed periodically by an external application named Application1. The data from Database2 will be sent to a database named App1_Db1 as soon as changes occur to the data in Database2. Litware plans to use offsite storage for all SQL Server 2012 backups.
Business Requirements
You have the following requirements:
• Costs for new licenses must be minimized.
• Private information that is accessed by Application1 must be stored in a secure format.
• Development effort must be minimized whenever possible.
• The storage requirements for databases must be minimized.
• System administrators must be able to run real-time reports on disk usage.
• The databases must be available if the SQL Server service fails.
• Database administrators must receive a detailed report that contains allocation errors and data corruption.
• Application developers must be denied direct access to the database tables.
• Applications must be denied direct access to the tables.
• You must encrypt the backup files to meet regulatory compliance requirements. The encryption strategy must minimize changes to the databases and to the applications.
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Question
You need to recommend an isolation level for usp_UpdateOrderDetails. Which isolation level should recommend?
A. repeatable read
B. serializable
C. read uncommitted
D. read committed

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