Will braces help to cover gap with my peg teeth or what option should I consider? (Photo)

Simple porcelain veneers or composite injection moulding can be the best solution for you to improve your shape of the peg laterals and improve your smile. I hope this helps Madhuri

Porcelain veneer is the best option on peg-shaped lateral incisors. So first create proper space for peg laterals [peg teeth are smaller in size] and after that porcelain veneer for smile improvement.

I would not recommend closing the teeth closer to each other. A few reasons the least being it is less esthetic then my next suggestion. Your bite in this picture already appears nonideal and tightening the thing up on the top arch will make that worse. BEST would be braces or Invisalign and to get your bite correct then veneer or bond the laterals