Am I supposed to just enlarge the smaller hole?
What am I missing here?
Just being a dunce?
What adhesive is used here?

TIA

 

Looks like you don't have a choice. The smaller hole will fit over the outer tube and it will have a slight bend or curvature to it where it's stretched over the tube...but....once you slice it that method won't work. I assume you're going to use the one you slit. The other one you show in the bag.....you'll end up tearing it if you try to snake/stretch it on over the end of the column since the splined inner steering shaft and the shift lever cause too much interference and the seal will split/tear.

Also...you probably already checked but make sure the foam piece is facing the right way when you put it on over the column tube.

Once you have the hole enlarged to whatever degree you like you can put some contact cement and a piece of cotton cloth over the split in the inside of the foam piece (ie-hidden from view once installed).