Terrain or Plane?

I’m planning on creating a simple 3D RPG game and I’m not sure whether to use a terrain or a plane.

Which one would be best for a third-person view open world type of game?

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If you want landscape, use terrain.

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And conversely, if you only need a flat surface, use a plane.

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Also note that a blank unity terrain object with nothing done to it looks like a plane, but it performs far worse than a plane on a limited device, like a mobile phone.

If you can get away with a plane it will benefit you to do so. For the best of both worlds sculpt a unity terrain then convert it to a mesh for faster performance.

And finally if you must have full terrain features, use the real unity terrain, being aware that for whatever reason, a basic terrain object is slower than its mesh-only counterpart