Best area... depending on your ability to move around, what kind of stay are you looking for and many other factors.
Of course the central area is the best if you have to be right in the centre and don't want to walk that much.
Even Veronetta is a fascinating zone if you don't have the problem to walk a bit more... The same i could say for the San Zeno area...
There are lots of monuments to visit in the city, you'll fullfill your days for sure. I dont think you'll have that much time to visit Lake Garda too, but if you're not spending the whole day for Churches and monuments, then catch a bus to Sirmione or to Malcesine and enjoy the Lake (Malcesine for a fantastic view from the mountain using the cable-car).
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