Without seeing the engine, if the cylinder bore is relatively undamaged you could just replace the one piston - s/h pistons are usually OK to use again - but fit a new set of piston rings all round. Sounds as though you need them anyway. Slight nicks and gouges in the bore can be polished out with fine emery paper if they are not too deep - or get the bores honed.
If the cylinder liners are sound but badly gouged, a rebore and new pistons may be the answer. Cheaper than a new block.
Also check the inlet valve is not bent.
I think maybe crack test the block and the head using a dye spray before you go any further.
Dave

If the cylinder liners are sound but badly gouged, a rebore and new pistons may be the answer. Cheaper than a new block.
Also check the inlet valve is not bent.
I think maybe crack test the block and the head using a dye spray before you go any further.
Dave