Your options are then:

Have it rebuilt (hone cylinder walls, new rings, etc) IF those doing the work are good, experienced and the labor isn't too high.

or replace the engine (used or reman from Volvo).

Replacing it with a used engine might be the cheapest way to go but one takes the risk that the replacement engine might not be perfect either and could have higher mileage that what you now have. All used car parts places will tell you that their replacement engines have "30,000 miles on it" (NOT too likely) so there's some risk going that route.

The OEM Volvo reman will be like new but they're not cheap either. If you plan to keep the car for a long time, like another 10 yrs, then I'd suggest a reman as it'll be worthwhile to you in the long run.