Very old tinnies had varying transom heights. This is obviously a very old tinnie. I have also owned very old tinnies, and have had to deal with their idiosyncrasies.
Sometimes a block of wood is needed under the engine mount to lift it up a bit to get the right height. Bit of a bugger on this old boat as the design isn't really allowing for it, so you need to come up with a fix. You might be able to do something with a bit of aluminium box section. Try to retain the lip to stop the engine sliding up and off when (not if) the clamps loosen.
Sure as shit though, if you add 5" to it, you'll need a different engine becasue it will ventilate until the cows come home.
The blokes who have their blinkers on and are insisting it either needs a 15" or 20" engine or transom are just giving you bad info.