I believe the large diameter (0-200M) hole is .200". 3/16" would be a little under, and 7/32" would be a little over that.
When you flip the rear sight blade there is a shift from side due to the threads of the screw it rides on. The two holes are supposed to be offset by that amount to compensate. It is unlikely you will drill it accurately enough. Just buy an A2 sight blade. While you have the adjustment drum off, toss it in the trash, and replace it with a Rapidex Windage Knob. Also, replace the front post with an A2 square front post. This give a much sharper image, especially when the light comes from the side. You will then have sights that are, for all practical purposes at realistic engagement ranges, as good as the A2 sight system. (ed to add, the Rapidex knob has 1/2 MOA clicks)
The Rapidex Windage Knob from www.dpmsinc.com is part number UR-39A1, $9.00. From www.bushmaster.com the same knob is LMT-001K at $9.95. And both DPMS and Bushmaster have replacement A2 front posts and rear blades.