Is it possible to restore the oldest version of a file in Google Drive

Good luck.

be advised that if you want to be better prepared against things like this in the future, rclone has a --backup-dir option you can use.
https://rclone.org/docs/#backup-dir-dir

With this it is not hard to basically create a full versioning system in rclone itself. It may technically be redundant for a cloud-host that has versioning, but it can make for a system that is a lot easier to manage and restore from in the case of accidents like this.

A bit down in this thread is a script I made a while back for another forum user if you are interested to see a relatively simple (but effective and functional) way of scripting this. Perhaps you will find it useful:

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