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Now how do I interpret the 3rd line? Does this mean I sight in at 300 yards and for 100 yards aim 12.9" low and at 200 yards aim 7.6" low?
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No.
What it is telling you is that with the rifle sighted for 100yds (hits point of aim at 100yds) then the bullet will be 12.9" low at 300 yds . With the rifle sighted for 200yds, the bullet will be 7.6" low at 300yds.