Option 1 - Living Room - Modular Lounge - this arrangement is what I recommend for layout so that the full length of the living room into the hallway is integrated. Also good seating capacity for your family. Recommend a light to medium beige and have it treated for spills. Grey is too dark and doesn't go with the rest of colour scheme. Plush Sofas - enquire for price.
Cheshire Rug from homedecorators.com. Great texture, higher pile in the white, lower pile with the color. Lots of different colors, including navy, gray (shown), tan, rust, light green, and light blue.