I quoted the answer for the caliber. More than half of their rifles were 7.62x54R caliber, hence it would be logical for me to modify others to the same caliber.
Regarding target use/sniper use: Estonia was not the only country to prefer fine adjustable peep sights as sniper rifles compared to scopes. Norway did the same (aside of the 1910 contract for 500 scopes by Voigtländer) and continued this until post WWII. Even the M59F1 Norwegiansniper rifle had the peep sights as primary sights and the scope as an aid put on the side. And if Estonia only had 100 scopes as late as 1939 it seems logical to me they did use fine adjustable peep sights for snipers prior to that.