It depends on RME device. For certain RME devices manual says "shield lifted" for others "shield grounded". I have asked about it on this forum, and RME (probably MC, but it could have been other RME guy) explained, that it is indeed different for different RME devices. That they test what works best for given RME device....
And concerning the levels. I do not care, I just use similar adapter like suggested in this thread and no problem. What about just try the adapter? If it works reliably for you, good, if not then I would seek another solution.
The only thing to solve is, whether to use XLR cable or coaxial SPDIF cable. If I was at your position, I would try that cable that I have handy (for that length) - XLR cable. If that would not work well, I would try coaxial one.
FF UCX II, Digiface USB, Babyface Pro FS