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The best/easiest for this task imho is ripbot. Just select m2ts for the output and copy stream for the audio (it also lets you make a blu-ray disc on a DVD5 or DVD9, for this you need to fix the output size and encode in 2 pass)
Keeping the default settings (with crf 22 - constant quality) will ensure almost no quality loss. If you really want to go for top notch quality you can try crf 20 or even 18, but it isn't worth the longer encoding times imho; crf 22 is good enough. The default level 4 setting also ensures blu-ray player and hardware decoding compatibility.
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