I’m providing both answers to Jenica’s question in the same post.
Whichever choice you make has no consequence, aside from the scene shown in Lenna’s memory. Either way, Hiryu will still transform himself into Phoenix and lend his strength to the party. That, I think, is what’s most touching about this entire sidequest.
Even if Lenna did want to kill Hiryu for his tongue, he forgave her thoughts and actions. He understood her love for her mother. What’s more, he continued to save her life again and again in spite of whatever she would have done to him, had King Tycoon not intervened. I like to think Hiryu always tried to protect Lenna in her mother’s stead.
Hiryu doesn’t move at all throughout the entire flashback, no matter which choice you make. I have a hard time believing he’s just sleeping. There’s no evidence to support this claim, but I think he stayed still because he would gladly have died to save Lenna’s mother.