i read where you should drill a small hole in the bottom of your fuselodge in case of a fuel spill so it will have a way out any suggestions on dressing the hole up a little bit like inserting something thru the hole so it wont look like "a hole" ?

The hole is small and on the bottom of the "fuselage" where it won't be seen. I wouldn't worry about it. Drill before covering if able at the rear of the fuel tank area (or lowest point). May want to "fuel proof" the hole with a bit of epoxy or thin CA when done. If not the fuel will soak into the wood.

what size hole will it take say 3\16 or so

That would be fine.