That system is currently running Mac os 8.5
But it is capable of running  Version 10.3: Panther
YES, 'capable' of running Panther, but it's not easy for a newbie to do.

You would first need to update the iMac's firmware or Panther won't
install on it.
OS-8.5 is a very old operating system.  Panther is also fairly old - a

2003 system, as I recall.
Then, its puny 6 GB hard-drive is marginal for OS-X, and changing out
hard-drives on those old iMacs is a royal PITA.
It will also need more ram, which is fairly easy to install through a
door on its bottom.
By the time you screw around with it you would have been better off
buying a G4 with OS-X installed.
I had one of those old iMacs and I threw it away several years ago – I

didn't even bother trying to sell it to some unwary buyer


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