Both of these wrestlers were submission specialists. Both of these wrestlers were legit. Both of these men were highly accomplished pro wrestlers, but anything Kurt Angle did, Antonio Inoki has done better.
For example. Kurt Angle defeated Steve Austin. Antonio Inoki defeated Hulk Hogan. Kurt Angle defeated The Rock. Antonio Inoki defeated Ric Flair. Kurt Angle defeated The Big Show. Antonio defeated Andre the Giant. Kurt Angle defeated Sting. Antonio Inoki defeated Sting back when he was still relevant.
From a kayfabe perspective Inoki hardly ever lost matches. When he did it was to further an angle. Kurt Angle on the other hand lost plenty. You could easily place the names that Kurt Angle has defeated up against the names that Antonio Inoki has defeated and Angle's list just would not compare. In fact Inoki has defeated two prior Olympic gold medalists in the past in Wim Ruska and Shota Chochishvili, the latter by submission. So the argument of "Inoki never fought anyone like Kurt Angle before" is dumb.
But lets dig a little deeper here...
Accolades. Kurt Angle has been in TNA longer than he was in WWE at this point. He's won the TNA world title half a dozen times if I recall. But for all those reigns business in the promotion has never improved. TNA is still a regional promotion. Inoki took the world title from the National Wrestling Federation, a small promotion in the States, back to Japan with him. After holding it for 10 years it became the top prize in the country. Inoki created huge gates in NJPW with his feuds with Tiger Jeet Singh, Riki Choshu, and Stan Hansen to name a few. Then you look at all the World and National tournaments that Inoki has won. 12 of them from what I count. Tournaments being a huge source of income for Japanese wrestling promotions, similar to the KOTR in its glory days. When Inoki lost any of his titles, it meant something. usually a huge payday for NJPW in the future when Inoki would get his rematch. When Kurt Angle lost the TNA title to James Storm who held it for about a week before losing it, what did that accomplish? What about his 15 day WWE title reign in 2001, where he beat Stone Cold and then dropped it right back. What did that accomplish? Inoki was easily the more decorated of the two.
Popularity. In Japan Inoki was king. Period. But he also was quite popular in the States. He has a winning record in the Northeast and Vince Sr. awarded him a title made especially for him. The World League Martial Arts title. And since this hypothetical match is being fought in Texas, Inoki won the top territorial title in Texas in the 60's back when the Von Erichs still controlled it. So the location doesn't do a thing to help Kurt Angle. Inoki has stared in movies, appeared in manga and anime, and had plenty of merchandising appeal. Kurt Angle mostly piggybacked off the WWE promotional machine. Over a billion people saw the Inoki/Ali fight. I doubt that many total people have ever seen a Kurt Angle match.
Overall influence. Antonio Inoki was many things: Legendary wrestler. International icon. Politician. MMA innovator. WWE Hall of Famer. He trained many future superstars as well as building the foundation for pro wrestling in Japan. As a politician he was able to use pro wrestling to promote peace in isolationist areas such as North Korea, China, and the former Soviet Union. Kurt Angle was just an upper mid carder/occasional title holder on the level of Big Show, Jericho, and Mick Foley that we remember from the Attitude Era 15 years ago. But his influence is nothing compared to Inoki, who is a true bonafide legend in every sense of the word. I don't see waves of people lining up to be slapped in the face by Kurt Angle.
So for the TL;DR version: Inoki was far more accomplished and dominant in kafabe and has all the tools needed to best Kurt Angle. Inoki was a far better champion and was far more popular around the globe at his peak.
Inoki should win here.