The sights we have on our rifles are known as Match or Dioptre sights. This consists of the circle on the rear sight that you look through and the circle on the end of the barrel, the foresight. When you correctly line these up and place the target in the centre, that is the correct sight picture.
The other option is Iron Sights. You have the normal hole on the rear sight (or a small notch) but have a blade as the foresight. Line the top edge of the blade in the centre of the rear sight (or make the notch create a flat line with the rear sight, as below) and place it on the centre of the target and that is the correct sight picture