All would be perfectly cute. What a sweet thing for you to do!! Maybe ask the neighbor what they think is trending or just do the one with the amount of work you want to put into it -- with just 2 initials being the easiest and the initials large with name in semi-circle being more involved. How you use the colors for the letters and the background should match how the school uses them. It will make it more significant and meaningful to the end user.