Nice! Beautiful choice of a rifle. Marlin 980S in .22 LR all the way.
Rifle: Marlin rifles are built like tanks. 980s has reliability of a bolt with convenience of a detachable mag.
.22 LR: It's everywhere, cheap, and extremely versatile. Hard to outgrow it for your purposes.
I'd stick to the .22 LR. It'll do everything you want if you practice enough and put the right ammo through it.
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Did you look at the similarly-equipped Savage Mark II?
http://www.savagearms.com/markiifss.htm
I'm a big fan of their accu-trigger.