Upgrade to ios 16.4 without upgrading to ios 17

To be as specific as possible. You cannot pick and choose the version you want to update to. Your iPhone will update to the currently released iOS version being signed at the time you choose to update. If you see iOS 17 as the update version, there is NO WAY to choose 16.4 as it is no longer a signed version of iOS. So you MUST update to iOS 17 if you need a higher level iOS version for an app. Or don't update and you can't use the app. Your choice of course.

Settings > General > Software Update

The phone will update to whatever is displayed on the screen. Depending on your model of iPhone, you may or may not have an option to update to iOS 16.7.4

Go to settings - general - software update and start there. It depends on what phone you have as to what iOS version you can get.

Please re-read what I said. You may or may not be able to update to 16.7.4. It all depends on the version of iPhone that you have, which you did not tell us about in your original post.

If you had an iPhone 8, you could update to iOS 16.7.4. Your response tells us that you have a higher phone version than an iPhone 8.

The phone will update based on the information that you see on your screen.

Then that is your only option.

I need to upgrade my iOS to 16

I need to upgrade my iOS to a 17