The inspector will be expecting you to use good judgement regarding the
safety and practicality of using checklists (have a look at
"Applicant's Use of Checklists" in the PTS).

I would recommend demonstrating that you know what a checklist is, and
when and how to use one (e.g. pre-flight and before starting engines),
but use them in a safe and practical manner (e.g. memorized) during
other phases of the flight.