The headmaster of the school is not only a civil servant but a role model in the vicinity. Teaching and grooming the impressionable young boys is his service and a mission. He should leave an indelible mark in the minds of young boys about moral values such as helping the disabled and diseased and standing for truth and practicing neutrality in decisions, despite alls pulls and pressures. He should also act as a friend, philosopher and guide for the neighbourhood, and, hence for the parents of students.
The first option of rusticating the diseased student from school is unbecoming of a headmaster and does not serve any purpose rather it is against all moral and ethics. The parents and the students must be made aware about the truth that AIDS is not contagious disease.
Through the second option, the headmaster can uphold the right to equality of opportunity and dignity of the student and his fundamental right to education. It will not only help the diseased student, but serve a larger cause of promoting truth and sympathy in society.
He should not ideally yield to the pressure to isolate the diseased student, because it will not only affect his confidence but set a wrong president.
The headmaster is also responsible for the confidence of remaining students and trust of their parents. If practical consideration warrants, for the sake of confidence of other students and parents, he should make an arrangement of sitting for the diseased student in the same class at a little distance as long as he convinces the parents and students.
If there are parents who still do not agree or put pressure, he can firmly say no and advise them humbly to seek admission elsewhere. This would be a balanced approach which he should follow.