This video compares the original 4:3 aspect ratio of the Resident Evil 0 to the 16:9 widescreen aspect ratio.
You can find the video below:
As you can probably, the widescreen aspect ratio extends horizontal view when compared to the original 4:3 picture, without having to cut off the top and bottom edges.
Therefore, the 16:6 widescreen mode is the best way to play this game.