I had a 1975 U08, similar head badge. Yours is newer, maybe a 1976 or 1977, as you have stem shifters (the 1975 had downtube shifters). You have a project on your hands. Most of us recommend replacing the steel rims with alloy rims. Any of the decent (and cheap) Suntour friction RDs will work, you need to check clamp size on the FD.

This bike has a lot of unusually sized french parts. You need to save everything you can. Read the other recent thread on the person trying to find a bottom bracket spindle (several pages of issues), and you will appreciate the stock parts.

Wheels and derailleurs are interchangable, so that will not be a problem.

The cheapest way by far to fix this one up is to find a donor bike (but you have to find the donor of course, which can take some time and looking). I rebuilt my U08 last year, aided by a $5 Peugeot donor (rough shape), which provided a replacement bottom bracket and crankset, some miscellaneous brake parts, a rear derailleur and a vintage seat. I salvaged about $100 worth of parts off that $5 donor bike. And I still have most of the donor left (I will probably build it with parts when I get around to it).

$200 is way too much to invest in this bike. You are better off selling it to someone (that happens to have some parts laying around) and buy a complete bike. I routinely find much nicer complete bikes ready to ride with standard sized parts for well under $200. I have sold bikes like this one, in totally ready to ride, fully rebuilt condition for around $100 (a little more when they have alloy rims). Your area is probably more expensive, but that cuts both ways, as you will also be able to get more for the Peugeot as is than I could around here.

Buying parts piecemeal (via ebay or other sources) can run up the cost significantly. And at the end of the day, a U08 is a nice, but bottom end, gas pipe framed bike (not worth much, but people do like them).

And unless you are a bike mechanic (hobby or pro), or want to become one, and have all of the tools, you are better off leaving the projects to such people. If you take the bike to a shop, you will quickly go through some serious money to fix it up. It is not unusual for a full rebuild to cost $250 to $300 at a shop.

I hope this does not come across as negative, as any way you cut it, this is a great find!!! It will either be the down payment for the bike you need, or you will convert this one into that bike.