If you can find a front sight from an M95 Straight Pull carbine length barrel, it will be the perfect height for you K98 to bring the POI to POA.
Numrich might have them or you can ask a local gunsmith.
This is an issue that has plagued shooters of K98 and other milsurps for decades.
These rifles weren't intended for pinpoint accuracy at the normal 100yd ranges we mostly shoot at.
The rifles are zeroed appx 6-8 inches hight at 100yds to have a 250-300yd zero, which is just fine for use in the battlefield, with troops trained for this.
Your only other option is to modify the original sight, which often turns out be be fugly.