Giving my iPod touch to family member

I have a 3rd generation ipod touch that I no longer use.  I want to erase my personal info, etc. off of it so when I send it to my family they can start it up on their itunes and computer and use it.  
Some people say to reset others say reset to faculty conditions.  Can I do it by just using the ipod itself / settings / reset to facutly condition?

Can I do it by just using the ipod itself / settings / reset to facutly condition?
Yes.
Tap Settings > General > Erase All Content and Settings

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