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A little rust is normal and won’t affect the magneto’s function. If you want you can clean it up a little with a wire brush and/or a bit of medium grit sandpaper. Just don’t get the grit and debris near the points. Clean the points up with 400-600 grit wet/dry sandpaper ….give them a squirt with brake cleaner and then run a piece of paper (like a grocery bag or business card) through them for the final clean. Put the flywheel back on and test spark. You will probably be fine.
I do see that discount marine parts offers a carb-kit for your engine….so if after having a look at it you can opt for that if you see the need. Often just a cleaning and inspection is all that is needed; try and save the gaskets as you take it apart. The kits are $$$$$
Maybe others here will advise you re: the lower unit grease or oil. Check that before running.
Good luck!