True Dolby surround 5.1
If you use the TV ARC then you will get compressed 5.1
For uncompressed you need either a TV with EARC (not recommended buggy as hell trust me)
Or you buy a AV receive that supports HDMI 2.0b or 2.1 if you want to go Nvidia 3000 series later and get a monitor TV that supports 4k 120Hz. Then you hook your PC to the AV receive and get full sound just remember that you need a AV receive that supports LPCM format. And then use the HDMI out port to hook your AV receive to your TV.
Right now it is very difficult to find a AV receive that supports HDMI 2.1 they all have bugs.... You can Goolge and read also they are very expensive we are talking 1500 euros.
The Arcana allows you to split the signal into Video and Audio. It takes in one HDMI signal from your PC and outputs two HDMI signals one that carries video full HDMI 2.0B support and a second that carries the full audio that has everything including 3d sound like Atmos.
I would recommend you buy a AV receive that supports LPCM and atmos. And has normal HDMI 2.0b outs for video passthrough. You can get an OK one for relatively cheap right now. And hook you PC to AV receive then the AV receive to your TV. That will work without bugs.
Later when you get a HDMI 2.1 GPU and a HDMI 2.1 TV or monitor I would buy the next generation Arcana that they promised to release second half of this year so you do not need to change you AV receive and can hook up what ever TV or monitor you want.
!!!!
So for a 4k 120Hz video you need HDMI 2.1 But not for audio. All audio formats including Atmos run fine on HDMI2.0b.
PC audio is often outputted over HDMI in LPCM format so whatever AV receive (most of them support this) or soundbar (read carefully many do not support this) needs to support LPCM format.
Optical audio is basically dead. They only support compressed 5.1 and are slowly dying out. Only useful for legacy systems.

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