That plaid would be great! I'd find a yellow, too, to set off and plaid and the navy both.
If it were me, though, I'd use it on the straight grain. When I've used plaids on the bias, they were the type with narrower bands of color. Not sure what the scale of your fabric is, but this one looks like a "use it straight" one. And you wouldn't be dealing with bias edges.
hugs,
charlotte