I'm fine with it being tested. It will pass.
There is certainly provision for 98 light-duty vehicles to be tested without OBD2. There were a number of vehicles which were manufactured without OBD2 in 98. They make provisions for them.
Also the law states that the Director has the leeway to allow an equivalent test.
An S50B32 was not available in Canada. And it's not an older motor. It is the same year as the car.
Ironically if this were a 97 I would be fine.