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I am still new to SharePoint and would like to know how do I approach development? do I create hosted apps? or do I need to consume sharepoint data using Office 365 APIs? or should I go to mvc provider hosted apps?

any guidance into which approach is great for me. thank you

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Without going too much into technical details. Using CSOM (Client-Side Object Model) or the (REST) API within an app is in general considered best practice and future proof. When working with Office 365 using (provider) hosted apps is the only option you have.

The other option is SSOM (Server-side object model). Sometimes also called "farm solutions". It only works on on-premise installations. You basically create a package containing all your logic and deploy it on all your SharePoint machines.

The correct 'solution' depends on your requirements, infrastucture and SharePoint version.

You find a nice overview here: https://pankajsalunkhesharepointknowledge.wordpress.com/2015/09/30/csom-vs-jsom-vs-ssom-vs-rest-sharepoint/

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