Footpeg location for WD12

I'm working on my WD12 and want to install the pegs before installing the deck.  I've purchased bolts and followed the directions to locate the bolts 2-inches down from the hull's top edge.  This seems high to me as the top of the peg is sticking up a good 2 inches.  I pretty sure this is going to hit the deck when installed.  

Am I looking at something wrong here?

 

(I would post a pic, but I'm not sure how to do that.)