OSB board will do the trick. You need another photo for us to offer a species and finish. Natural finish (clear coat...water based polyurethane finish...NO oil modified) in a low gloss or satin finish on white oak with FLOOD LIGHTS will offer the same "look" as the poor photo. Beyond that, you will need a better photo.

If you want to let in more natural light, I suggest either solar shades or sheer shades. Both let in plenty of natural light without sacrificing privacy. Here are examples of both: http://www.blindsgalore.com/solar-screens http://www.blindsgalore.com/sheer-shades

The dark blue and white combination at no.1 looks like a perfect combination of colors, furniture, furnishings and accessories to give it a complete and cozy look.

Though I voted for the wood panels Its not the always that case it depends upon design to design. To choose any one will be injustice for other design.