26 has more torque, you'll accelerate to top speed sooner. 29 more top speed, it will take longer to get there.
26 if you have hills, 29 if you have very little hills or mostly flat road.
26 would all round be easier on the engine, especially because it's going to be 49. Another option is upgrade out the box with a shift kit. If you are mechanically inclined it's a great idea to just start right away with a jackshaft kit from sick bike parts. It will only make everything 10 times better in experience, both on the road and in assembling bikes and engines.
I use 27.5 and I can haul a hundred pounds in groceries up rather steep hills without ever having to pedal, and also can aquire speeds of 45-50, all thanks to a shift kit.