Both. Which happens, and how, depends on volume.
I think that most people consider terraces on slopes exceeding 15%, and you're double that. I think that to increase water infiltration in any meaningful way, you'd need to terrace it.
If you didn't want to go to that extent, you could lay fallen branches and logs on-contour and stake them in place. That way, the water would infiltrate as its momentum is taken by the obstacle, its sediment gets dropped, and it tops your sediment trap at roughly the same level. You'd get increased sediment deposition on the upslope, more soil, and probably greater localised plant growth.
But terracing is the way to actually make use of the space, even if you make little fishscale terraces, little landings arranged on-contour designed to hold copses or pocket gardens against the
shelter of the hill.
Let us know how it goes, and good luck.
-CK
A human being should be able to change a diaper, plan an invasion, butcher a hog, conn a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyze a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects.
-Robert A. Heinlein