A peugeot 205 T16 front weel drive is possible but than the engine comes out of an 405 T16 (streetversion) and then link a MI16 gearbox to it and you have a 205 T16
and a 205 Gti engine is 1.9litre and this is 2.0litre
only to find a T16 engine from a 405 is a problem its very rare. original it produces 220 HP and if you put it in a Small 205 than you have a cannon