Lumber rack advice needed… 1 3/16" peg in a 1 1/4" hole

I'm building a lumber rack on a wall of my shop. This rack is comprised of 4x4's bolted to the wall studs with 1" EMT arms extending out from the posts. The issue i'm having (or perhaps not) is that the O.D. of the EMT is about 1 3/16 and the closest bit I have is 1 1/4. Given the length of the forester bit I'll use the holes for the EMT will extend almost 3" into the post (which measures 3 3/8"). This design was borrowed from someone on another forum who used galvanized pipe and based on his bit to pipe diameter ratio had to pound his sections of pipe into the posts, i.e. no slop. My EMT arms will have a bit of slop. (The arms will be sloped 5 degrees so there is really no worry about them falling out.) The slight bit of play in the fit of the pipe into the hole shouldn't really be a concern as far as holding power over the years should it?

Of course one response would be…"go get a 1 3/16" bit" but frankly I'm anxious to get this project done today and I don't feel like getting in the car. If this loose fit is going to be a problem down the road I'll put the project off, but I'm wondering if I'm worrying for nothing over this.

Could you not cut a small wood shim and pound it under the EMT so it would hold tight to the top of the hole?

Could you drill the hole 1 1/8" and hammer the pipes in?

I made some drying racks for our paint shop and used 1/2". I drilled the holes at 5/8 which left some slop so I put a screw into the side of the 2x that ran into the pipe and held it tight. The screw point locked the pipe in place.

When I did mine I just ground the the bit to the dimension I needed. I used 3/4" emt and I think it was right about 15/16" I needed for the hole.

I used 3/4" gas pipe, which measures about 1". It is heavier wall, and the rubber chair feet you can buy fit perfectly to cushion the ends.