I like option 2.... it gets the niece connected to the project.
Having taught sewing for many years, I always found that when the student picked the project, the outcome was always better. They wanted to do the project and were happy when it was done and they could use it.
Getting kids hooked into sewing is a good thing..... way better than some of the things kids get hooked into these days. We old home-ec teachers must have done a pretty good job cause look at all the sewers today....... increasing numbers..... yeah!!