Translation:Please cut the bread with a knife.
No, there's no real difference. I believe it's something of a stylistic choice. In general for words like this, using kanji feels more "proper" or "official", but that doesn't make using just kana "improper".
That said, some people in the discussions here on Duo post the translated sentences written how Japanese people would typically write them, and some people post full-blown kanji versions, ignoring the fact that many words (like 何時も = いつも) are hardly ever written in kanji in modern Japanese.
Good answer Cale! I just wanted to add a couple of things.
Firstly, the て-form of 着る is actually 着て (きて) since it's an ichidan verb.
So we have three similar pronunciations, きて, きいて, and きって. The difference between the first two is vowel length. In きて, the "i" vowel sound is as long as the "e" in て (sounds like "kih-teh"), whereas for きいて, the "i" is elongated (sounds like "kee-teh").
The last one, きって, is more difficult to explain. The small っ indicates a glottal stop, meaning the airstream is closed between the two syllables, making it sound more like "kit-teh".
I can only assume the context for this sentence is directed at someone attempting to cut their bread with a potato or something, and the speaker is saying that a knife is to be used, because linguistically 「ナイフで」is not necessary to get the meaning of "cut" across. On the other hand,「タバコ」is necessary in 「タバコを吸う」to convey "to smoke (tabacco/cigarettes)" because otherwise, you would just say 「吸う」which means "to inhale".
We must say that because it helps us learn sentence structure. This way, it's just a matter of vocabulary to say things like please hit it with a stick or please catch it with a glove or whatever. I thought it was obvious that if we have a dog that sells hats then we can have other sentences that will likewise help us learn structure.