Is there an option to Download File at lower quality?

Is there a setting that would allow me to download a file from my server to my local PC and at a lower quality?

For example I have 1080p files on the server but I only need 720p downloaded to my local drive. It’s a laptop so I prefer a drop in a quality to save drive space.

Can the Plex server transcode files to 720p so I download a smaller file?

No. The download option is a straight file copy. You could lower the quality using Mobile Sync but that doesn’t wok on laptops.