Small town name dilemma...I'm sad. Opinions please. :(

My husband and I had two names picked out for our first baby, Molly and Josie... we were leaning towards Josie because my husband has adored it for a long time and it goes perfectly with the middle name Hart. (Special family name) then two weeks ago a girl my husband went to high school with that we both personally know had her baby and named her Josie!! My heart was crushed! We live in a town of about 2,000 people. Graduating classes average about 20 kids. So our daughters will be in the same grade and grow up together in a very small town. My husband still has his heart set on the name but to me it's kinda ruined now. I don't know what to do and it's stressing me out! Should we still name her Josie and maybe spell it different? Josey? Or go with 2nd choice Molly? Opinions appreciated.