When I got my first guitar (and only one) I got myself one that was not really expensive, but at least more expensive than the ones on there. I was really excited for it and wanted a decent guitar. Now, 1 and a half year later, I wished that I just got myself a cheaper one. I do play it sometimes, but really not enough at all that I would need a more expensive one...
So as Evil said go with the cheaper one. If he really gets into playing guitar he can still get himself a better guitar, once he's really learned to play and knows he'll keep playing.
But nice present Raven! Going to be a nice birthday for that person ^^