Make a new document. File > New This menu will pop-up. Choose Profile > Print
Change the following:
Size: Letter
Width: 11 in
Height: 8.5 in
Units: Inches
Orientation: Portrait or Landscape
Color Mode: RGB
Select ALL the parts of the Panda. Then right-click and Expand Appearance.
Repeat Again: Select ALL the parts of the Panda. Then right-click and Expand.
Expand: Click OK
Select ALL the parts of the Panda. Then copy the parts {ctrl} + {C} or Edit > Copy
Then Paste in Place {ctrl} + {shift} +{v} or Edit > Paste in Place. There will be a 2nd copy on top of the Panda.
With everything still selected, Unite the parts
It should look like this . . .
Offset Path: With the shape still selected, Offset Path Object >Offset Path
Delete center shape
Select the Object and give it a red stroke.
Right -Click on the object and send to the back. Arrange > Send to Back
Select everything and change the width to 2 inches. Make sure the link to constrain proportions is active.
I changed width to 2 inches while constrain is active.
Move the circles somewhere for hanging the keychain.
Select ONLY the 0.5 inch circle AND the red panda outline.
Unite both the 0.5 inch circle AND the red panda outline.
It should look like this . . .