Illustrator Two Circles, Inner Circle Transparent to see image in background

#1
I am new to Illustrator and I am sure this is simple. I have looked at you tube, google but when doing what is suggested I loose my border. I am hoping someone here can guide me the correct way.

I am trying to put the image within the center circle. I think all I need to do is make my inner circle transparent, but when doing that I loose my border from the inner circle.

I have attached sample.ai for you to view.

View attachment sample.ai

Thanks in advance.