The mk3 8v block is tall, so there may be clearance problems putting it in a mk1.
The 2.2 audi engine is 5 cylinder so no good.
Audi did a 2.0L 4 cylinder, 3A i think.
This would be a straight swap for the 1.8 block, keep the 1.8 head and k-jet.
No messing about, straight swap, just need to set it up for optimal running.