Here are a couple finished ones...
I started by purchasing:
two different fabrics (one for the inside and one for the outside)
1 key chain piece (I found mine at Hobby Lobby, you can also get a purse strap clip)
First, cut the two fabrics so they measure 2.5 (2 and a half) inches by 13 inches. Also, cut one strip of fusible interface to measure .75 inches by 12 inches.
You can also use a color thread that matches the ribbon such as this:
And there you have it! Now you have a cute and functional key chain!