Don’t make the hole bigger!
Assemble it first (loosely), look at it, think about it. The hole only needs to be fractionally bigger than the male threaded insert to fit through. The ring goes inside the tank with the pips facing the tank wall. The other part screws into that. When it’s all fine and dandy the immersion element can be screwed in with the appropriate immersion spanner whilst someone holds the flange firm with something like a filter wrench.