Final answer:
The correct conjugation is 'estamos'
Step-by-step explanation:
The correct conjugation for the sentence 'Mis amigos y yo en la escuela' is 'estamos'.
The verb 'estar' is used to express location, and in this case, it indicates that 'Mis amigos y yo' (my friends and I) are in school.
For example, you can say 'Mis amigos y yo estamos en la escuela todos los días' which means 'My friends and I are at school every day'.
Learn more about Spanish conjugation