I used a 2 and 7/8 inch hole saw to drill out the cup holders. Make sure you don’t cut at an angle.
Placement is up to you. I put 8 cup holders at the table and centered them on what will be the exposed portion of the racetrack.
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Most cup holder inserts are for atleast a 8.6cm= 3 1/4 in wide hole up to a 4 hinch hole. Most of these cup holders can hold a 8.3 cm wide cup. So yes both your measurements and the authors measurements seem to be way off. Here is a referance link to a poker table cup holder with measurement specs in the photos. If anyone has a link to the metal insert let me know.