Team building

Are you asking for a team specifically for Arena? Or just to clear content? If it's the latter, Ike+B!Lucina+P!Azura should be enough, you can add whoever you want as the 4th member. I'm not particularly fond of running two dancers in one team, but Inigo is the next best unit you have imo, unless you build Alm as a pseudo-healer.

If it's for Arena, it's almost the same. Ideally, you'd want to build your P!Inigo to counter all the Reinhardts and B!Lyns you are going to find, but judging from your available characters I don't know if you already have enough resources to build him. Focus on building him unless you roll a better counter to either (or both) of them, and just run the same team, I guess.

Hey, I can't really add much as ghrskm gave you sound advice, although I would recommend running Jaffar instead of P!Inigo if you're just clearing game content: He's not the strongest character in the game, but it's useful to have a colorless/ranged attacker, and the debuffs from Jaffar can work well on PvE with a dancer. Although, you will lose out on magic dmg.

However, I do want to note one thing: I see you have an Ike+1. I would highly recommend against merging units when you're first starting out. I would wait until you have *at least* 3 fleshed out teams:
An arena offense team focused on player phase sweeping.
An arena defense team focused on Enemy phase counter-attacks and B-skills (like Vantage and Quick Reposte)
A PvE team focused on sustain (with a healer, or pseudo-healer).

By the time you've done that, you'll have a really good idea of which IVs to keep as you're merge target, and which skills you might want to inherit from 5star units.