Acceptance With Grace. The best_case scenario__and honestly, the most common reaction__is that your boss will accept your resignation with understanding and sincere congratulations. Your manager will be happy to see that you're advancing your career and moving on to something bigger and better.
Why a Resignation Letter? In these digital times, why should we submit a resignation letter, anyway? A paper trail does seem old_fashioned, but in this case, it's a best practice. It makes your intentions clear, as well as the conditions. You're removing any ambiguity about the end of your time there.