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Do you have the source data used to make the contours?
It's usually easier to coarsen/generalize a raster (like a DEM) and re-generate the contours from that instead of trying to generalize the vectors (contours) to avoid topology errors.
Both tools do give you the option to flag topology errors, but I try to avoid dealing with those errors in the first place.
Since this is for displaying data, and not analyzing the data, the smooth tool would give visually good results.
They both require Desktop Standard/Advanced.