Peeping Tom

It has been 9 months (almost 10) since we moved into our lovely home.  We have not purchased a single window treatment.  In the master bedroom (which still remains empty) we have a large sheet draped from the windows and in the guest room, we usually hang a couple of towels.  The previous owner left us some venetian blinds on the third floor (our current bedroom).  The only room that really effects us at the moment is the living room.  The top is a picture of our living room window and below are a couple of options I pulled online.  Any suggestions?

Option 1

Option 2