If there are pits which catch your finger nail, you would be best advised to have that cylinder bored until the pits disappear. Honing until the pits disappear would take forever and not give you a true bore. You will need a new oversize piston and oversize ring set for that piston.
The location of that spot is worst case scenario. The big boom goes on right there.
If you can't catch your finger on that spot, I would do nothing but put it back together, break in the cam, and drive it to break in the rings.
