The program does not support RAW images, and as you say TIFF images are overkill, this leaves jpeg as you option.
If you are going to produce a standard DVD disc (not a Blu-Ray disc) from the images they are going to be down sized to 720 x 576 (PAL) or 720 x 480 (NTSC), the quality may be 'poor' particulary if then upscaled to a Full HD (1920 x 1080) or 4K TV - the viewed quality will depend on the upscaler capabilities of the TV or player.
A Blu-Ray disc (BD) would give better image quality given its resolution of 1920 x 1080 if the player supports the BD format.