Use InDesign (of your choices from Adobe). It's the only application built for creating multi-page publications and adding images and text (but note that only one user at a time can work on any single InDesign Document, so you may need to build your book from multiple files, which you can do using the Book (.indb file) feature). In theory you could probably do this in Illustrator, or even Photoshop, and save out PDFs from these programs that could be combined later in Acrobat, but ID is built for this task.
For constructing a yearbook, InDesign. There is simply no better Abode option for typographic control. They will , however, also need Photoshop and Illustrator to create graphics and photomontages. That being said, if no one in the room has ever used the programs before, it will be an uphill battle trying to learn them while creating the yearbook. You might want to consider taking some classes, or doing lots of lynda.com lessons before you begin. And come back here often with questions.
Let me leave you with two words - the most important two words for a project of this size: Style Sheets
Nothing should be formatted without them, and they should seldom (if ever) be overridden.