Hole saw for one, but at the size you want expect minimum $30 and I've seen up to $45+ (price circa... holy crap like a year ago).
I'd use a dremel or a jigsaw myself, but I have a funny habit of accumulating tools. edit- so you may or may not have access to certain power tools /edit
quick and dirty method would be to get a power drill with as big a bit as you have handy, a pair of $5-10 tin snips (metal shears), and go at it til your hand and arm are sore (sex joke not intended).
cleaner, but more expensive method would be to use a dremel, jigsaw, or that hole saw
best, in my opinion, would be to get a drill press, a clamped on drill guide (block of wood with desired hole already cut), and the hole saw.
If you're going metal-to-metal contact, remember some lube. even if it's just some WD-40, your tools will thank you.
but if the structural integrity and/or aesthetics don't matter, there's always the sharp object (i.e. chisel, ice pick, screwdriver) + heavy object (i.e. hammer, rock, whatever) way of bashing a new hole into metal.