I would have it honed on a good Sunnen honing machine with a torque plate to remove the scratches and make the cylinder round and seal good up twocents
Once you get the heads off you will be able to see more, sometimes things look a lot worse than they are shruggy work scope
How many runs on the motor and rings?
If more than 30 put new rings in it up
I don't like or use low tension oil rings any more unless the motor has a vacuum pump on it twocents
Please let us know what you find and decide to do thumbs

Mr.Cab Racing and winning with Mopars since 1964. (Old F--t, Huh)