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OK, so it seems like the powerhead has never been apart, so it seems unlikely that someone has tried to bore/hone the cylinders in the past. Nonetheless, I would measure the piston skirts/cylinders. Try to check the ring end gaps on the old rings, and definitely check all ring end gaps on new rings, especially if using aftermarket rings. Clean those piston ring grooves thoroughly using one of the old rings, then check the side clearance of the new rings to make sure new rings fit properly and don’t get stuck easily.
OK, the engine surely had cooling issues, guess it was used in salt water. But, it seems like you have gotten it all apart without breaking bolts/stripping threads. I would go ahead and clean all the threads with a tap, and check them all carefully. The last thing you want is to have a thread strip out while torquing the head bolts. Be sure to check the plug threads also, look for a decent used head if plug threads are badly worn/stripped, I don’t recommend trying to repair plug threads with helicoils etc.
I feel pretty confident that the stuck rings were the cause of your low compression readings. The engine didn’t get proper maintenance, wasn’t cooling properly, probably was using crappy oil. You mention that the impeller did not look like the right one, would love to see some pictures. There are two different water pump kits for this engine, the old style with the aluminum housing, and the newer style with the plastic housing and smaller impeller. None of the parts are interchangeable. Was the gear oil in decent shape? No sense reinstalling the gearcase if the lube was milky or had water in it.
Sounds like this engine is in decent cosmetic condition, and is worth resurrecting. Feel free to ask more questions and post pictures. I have seen those OEM rings for sale on ebay, don’t know if they will ship overseas though.