It's called "cut & paste" only on this one, you use real sissors and real paste.
Personally, I would print it out, cut each letter (as a square of course) and lay it face down on a strip of scotch tape end to end and then paste (spray glue in this case) to the wood. After cutting the letters, center the oval from a second copy over the letters and cut the outside shape including the hole for the chain.
Just my two centovos.
Rog