Forget about using bicycle wheels and/or rims on that build. You're going to need a motorcycle rear hub/wheel assembly (preferably with a rubber dampened sprocket) for that engine. Note: your engine looks like it has a pretty long Effective Stroke; i.e. the distance from TDC to where the piston starts to open the exhaust port (this distance is also known as the Power Stroke). This indicates to me that it's going to have a tremendous amount of torque, and therefor a very strong rear wheel assembly (hub/sprocket/spoke/rim) will required. I also agree with Ron334 in that you're going to have a lot of problems building a frame that will handle such an engine (the weight of that engine alone could be a serious problem for most any bicycle frame).
I'd also recommend a front brake and wheel assembly from a 200cc (or larger) motorcycle.
Actually, it is a big deal. You and others could be seriously injured if does break.