If you want server HA within the same physical location, I would have have 3 Exchange Servers in one DAG.
I would recommend 3 servers in the DAG so you can bring one down for maintenance and still have redundancy. If you have 3 servers, then there is no need for a File Share Witness.
If you can only have 2 Exch Servers in the DAG, then The File Share Witness should not be on a DC. Use the member server if that is all you have.