Although I'm working on my Subie, this question probably pertains to
any caliper rebuild, including Fieros. So please bear with me.

First, an admission. I've been working on cars for 50 years, but I've
never rebuilt a brake caliper. Ever.

I discovered that the left rear caliper piston of my
'98 JDM Subaru Impreza STi was starting to bind due to the rubber boot being torn and the protruding edge of the piston becoming corroded. With the car being JDM (
Japanese
Domestic
Market), it's always a challenge trying to find parts... but that's a rant for a different forum.

Anyway, I got what I believe to be the correct caliper rebuild kit. The rubber boot is correct, but I wasn't sure about the internal seal. The OD of the piston is 38mm, whereas the ID of the seal is at least 39mm.

If anything, I thought the ID of the seal should be slightly
smaller than the OD of the piston.

Is it usual for the replacement seal to be
larger than the caliper piston? Does the seal get compressed somehow when it's installed in the bore? Or do I simply have the wrong seal?
Please help a "newb" out!