I always measured around about right with fundal height measurement. But I always looked small. People constantly commented on it "Are you sure you are right about your due date? I don't think this one will be cooked on time...".
However, I was charting, so knew when I conceived and also had an early dating u/s at 6 weeks so there was no confusion about my dates.
Even my MW (I was in a birth centre) said that this was going to be a small-ish baby. DD was born naturally at 39 weeks, 2 days and weighed in at 3.9kg. So not a small baby at all. It does all depend on how you are carrying.

I wouldn't put too much weight into fundal height measurements at all. They are a good indication of whether baby is growing or not, but not about how far along you are. So it makes sense to compare measurements from month to month just to see if there is growth. Not really about how much growth there is.
Even u/s growth scans can be highly inaccurate. My friend for example was told she had a huuuuge baby. She had a growth scan at 37 weeks and they said it already measured 4kg. She went almost a week over until they decided t induce due to size. Inductin didn't progress, so they did a c/s as they doubted she would be able to deliver such a big baby anyway. Her son turned out to be 3.8kg. So a big-ish baby. But certainly not huge.

I would be very worried if they induced a baby that measures small. If anything, it's an indication that they need more time in utero, not less. Unless the size is dramatically smaller than expected so there is a reason to worry about uterine growth restriction. But I'm sure that diagnosis wouldn't be made lightly. Well, you'd hope so.

All the best, Saša