2D images may be in Analog raster or vector format depending on how the image is created. Cameras are raster format but several different colour formats are possible. Monitors started as analog (VGA) and then both VGA & digital (HDMI). Since this project defines the medium format as Analog, you still must be aware of all the possible I/O formats available and which you will accept, process or exclude.
An image captured can be transmitted (Tx'd) in FM and Rx'd without any Arduino or ARM uC ever needed. This would be a simple "black box" solution. For educational purposes, you are tasked to create something more discrete yet undefined for Input/Output (I/O) such as a "Logo" image. Graphic designs such as this are often done in a vector format which can be more efficient in memory when scaling up in size with the same smooth curves.
Although simple in concept, it does not define the format of all possible formats. The design process begins by you expanding the details in your "Design Spec" while ensuring it still satisfies the original intent while you clarify with your "customer" (Prof) as required with questions for "must have" vs "may have". Then you will list which formats you will choose, accept, process and exclude.
Since this project specifies the modulation to be analog FM you must define which image format(s) will be used for input and output. Also commonly used is AM, PM, QPSK.
Monitor LCDs are both analog (VGA) and digital (HDMI). Image capture devices are inherently analog but may convert to digital in a raw raster format, or decimated to a smaller array size, processed and compressed to a smaller image file.
The image could also be created by design in a vector XY format vs a raster pixel map. The analog pixel spec, can be the common raw 8bit*RGB format =24 bits per pixel (24 BPP), 8 BPP, 4 BPP, or 1 BPP (B/W). Higher resolutions are also available for non-standard requirements like XRAY photos.
You must consider all formats and if using a uC what libraries are available for conversion to the transmission format that you choose to receive (Rx)
colour depth, greyscale or B/W. This also affects the format of the analog signals such as simple Fax (B/W) or Colour 24 Bit. or anything in between.
There are no right or wrong choices if it still meets all your "customer's" requirements then it is perfect. Some may want to exceed "Must Have " specs with "May Have" features if it does not add significant cost or effort for bonus points. The choices are all yours.
If your "Design Spec" also includes measurable specs for design such as signal levels and signal/noise ratio, resolution, sharpness, echo-free, and jitter-free then you can also include Design For Testability specs (DFT) with test points (TP) identified. Standard test patterns may be specified for conformity and tolerance.
Not mentioned but assumed are the environmental specs, which could be defined as "Benign" ground fixed, limited room temperature range. Any stress such as temperature or supply can affect the tolerances of analog parameters, which must be met.
Often "customer specs" are unspecified, vague or implementation restricted for good or bad reasons. While creating your "Design Spec" confirm each requirement as you question the tolerances or suggest alternatives. This will help you focus the big picture ( no pun intended) and break it down into smaller boxes in your "block diagram" each with I/O specs in your design specs. Once understood finding/ creating /choosing the best solutions becomes easier.
Keep in mind, there may be unspecified "customer specs" for presentation, cost and timeliness as well as conformance to specs.