Thanks to Arran, I managed to make a step in the right direction:
Well to get rid of the interop error, right-click the reference in Visual Studio and go it's properties, and turn "Embed Interop Types" to false.
Now that I no longer get interop errors, I managed to reach a conclusion; here's the code:
// using WUApiLib;
AutomaticUpdatesClass auc = new AutomaticUpdatesClass();
auc.Settings.NotificationLevel = AutomaticUpdatesNotificationLevel.aunlNotifyBeforeInstallation;
auc.Settings.Save();