I plastered my entire kitchen. A lot of it looked like this. I used the following products:

Base coat - structo light base coat plaster Top coat - east sand 90

Notes on technique: spray the wood lath with water before applying base coat.

I mostly use mud squeegees instead of drywall knives. Much more forgiving. Also your final texture is very forgiving for the occasional mudder You can do this!

I've used about every product under the sun and what I've described here works best for me.

Other options include using sheet rock and trying to level up the the rest of the wall or removing the wood lath and replacing with metal diamond mesh.

Oh also you have wall paper there. In case you didn't notice.