Ryu is more much skilled than Link and would probably unarm Link. So Link sword and shield is probably a nonfactor. Keep in mind that martial arts was created for selfdefense against armed opponents, especially Karate, in which Ryu is also an expert.
Then, it seems to be a hand-to-hand fight... Ryu with his hadoken and handtohandskills and Link with his magic and fists. Links other weapons are pretty much a nonfactor in this fight.
Ryu is much more skilled than Link handtohand and seemingly a big way faster. While Link easily lifts mountains and is barely scratched by getting boulders hurled at him. So Link is easily more powerful and stable.
Link is in formidable shape and good at sidesteping and jump backwardss with great speed. He would probably dodge the Hadouken fireball with relative ease, so its pretty much a nonfactor. Link dodges a lot of stuff, anyways. Even through Ryu would never be able to avoid Din's Fire, which pierces the terrain.
Link always figures out how to defeat his opponent, so he is figurably very smart. He would use 2 or 3 DIns fires to handicap Ryu, then use Nayrus love to become immortal for around a minute, enough to knock the now slower and more damaged Ryu.
Link wins, 8/10