If you have priming pump(s), don't fill the filters, It's not needed and pre-filling them will only introduce contaminants into the fuel system. OEM's have found that most people prefilling filters do it wrong and introduce contaminants, and none of them recommend it be done anymore.
Your water separator is a pretty generic head. The bolt you circled is the one you remove. It should have an o-ring seal underneath, so make sure that isn't disintegrated before re-installing.
The 2nd filter head you've got the air port circled as well, I believe it's a needle and seat type unit, so it only needs loosed, not removed.
Remove both filters. Install new water separator and remove plug on head. Pump until fuel is present at plug and then reinstall plug. Pump some more until fuel appears at 2nd filter head, then install 2nd filter, loosen 2nd screw, and pump 2nd priming bulb until fuel appears at screw. Tighten screw, start bus, and hold at high idle. Shut bus down, look for/clean leaks, clean hands, job done