Website image hosting issue related

My WordPress website contains

1000-1200 images and 100-200 videos.
Should I use Amazon S3 for hosting images and videos of my website or I’ve to keep using WordPress hosting storage to host my images and videos.

Please help me, Which one is better?

It depends on the hosting plan that you have, you need to compare:
Space storage: If you plan to put more media content in the future
Speed of the server: If you plan to get more traffic in the future

Then in one or the two of these cases you should compare prices: moving your media content to S3 will be cheaper
Here is a how to do it: WordPress S3 Tutorial: How to Connect WordPress to Amazon S3 Bucket

If you want to move your WP website to S3 here the official tutorial (but costs more): Tutorial: Deploy WordPress to an Amazon EC2 instance (Amazon Linux or Red Hat Enterprise Linux and Linux, macOS, or Unix) - AWS CodeDeploy

Otherwise, not waste money in S3 for nothing if you have a good hosting plan

I’ve Choice Plus plan of Bluehost shared hosting https://www.bluehost.in/hosting/shared
So can you further suggest to me that whether this hosting provides good server speed at this many media files

It appears sufficient for now as a starter website, just stick with your plan for now, but when you get more traffic in the future then you will need a dedicated server to deliver high speed performance. After you can compare with S3 plans (just media or the entire server)

The equation is simple: more traffic ==> more revenue from ads/sponsors ==> you can afford better services for your traffic.
But never ever put lot of money in the beginning, invest as you go, with this strategy you avoid bleeding cash in the first experiences. Good Luck

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Thanks a lot for your valuable feedback