I use Photoshop, but a free editing programme such as paint.net should do it. Of course you will lose some of the photo. Briefly open the photo, select the elliptical marquee tool and select he part you wand and make it circular. you can move it to suit. Then "select" "inverse" (this selects the rest of the photo) then "edit" "cut" and you will be left with just the circle you selected. Then you can adjust the size to 2.5". I suggest you make a duplicate copy first as at the end you will no doubt save the final image , and you wont want to lose the original. The words in "paint.net" may be a bit different. A link:
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