You aren't in control of that space. That is controlled by the width of the notches on the ends of the two torsion bars and the width of the tube that goes through the frame that the bars sit in. The two sets of arms need to be roughly flush with the end of each torsion bar. If that leaves a small gap between the inner and outer arm on the right side, that's fine, if it doesn't, that is fine as well.
As stated, roughly parallel to the ground to start, move up if they can invert under full droop, but not so high that they run into something above the frame like the grill or inner fender.