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I'd say you answered your question... you need rings, probably overbore.
Could be scoring in the cylinder walls and/or oval cylinderss.
Probably a bit of all.
I've never tried it, but have had friends who have had good results with "Restore". I recall there being two types. A cheapo on in a plastic bottle, and a more pricey ($10+) one in a metal bottle. I'd give that a try.
If it works, great! But it's a band-aid. Not a fix. Basically plan on an engine rebuild, or sourcing a better engine.
Any history on teh motor? Is it original? Has it ever been rebuilt? (you'll find out if/when you get into it). they are good for maybe 3-4 rebuilds. Unless it's a B18 that's been punched out to a two liter, in which case.. it's done for or needs sleeved.
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-Matt I ♥ my ♂
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