Fukuoka - Hiroshima - Okayama - Osaka

Sir/Madam,
Please advise which pass is most relevant for my group of 6 pax for the itinerary below:

17/5 - Fukuoka to Hiroshima - Day 1 of JR pass if we purchase a 7 days option.
18/5 - Hiroshima to Miyajima
19/5 - Miyajima to Okayama
21/5 - 23/5 - Okayama to Osaka ( day trips to Kyoto, Nara & Kobe???)
Day 7 of JR pass 24/5 - Depart Osaka via Kansai

1.Which pass do you recommend?
2. Does the pass covers local buses or trams?
3. Which part of the rail station can we go to activate the pass on the day of travel?

Your advice is much appreciated.
Thank you.