From what I always have understood, the deinterlace settings in the properties tab are dealing with deinterlace of the preview window when this one is set to GOOD or BEST. The preview window is not deinterlaced when it is set to DRAFT or PREVIEW.
In addition, transient deinterlacing occurs when an effect needs to be rendered.
The option BLEND is used for footage with high contrast and little movement.
The option INTERPOLATE should be choosen when you have a video with low contrast and a lot of motion.
So this setting has nothing to do with rendering your project from what format you are using to whatever you are rendering to…
Theo