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deglaze the cylinder wall using a scotchbrite pad.
See if the crosshatching is still there in the plating.
is the plating gone/worn in spots?
Is the aluminum showing thru the plating?
Can you feel the scratch/gouge with your finger? does it catch on your fingernail?
what caused that?
See if you can take a better pic

Thanks for help. Ill try to snap a better pic. If I want to play it safe and recondition the cylinder, do you recommend replate or sleeve? Also, the piston and rings were recently done by PO, can I reuse rings?

Looks way better than the one I pulled off my 94.

I'd just have it Nickelsealed. No you can't...well shouldn't reuse the rings....The piston depends on condition, but if it is compromised in anyway, I'd replace that too. I just re built mine, I used new cylinder studs and replaced all the nuts on the top end....they're about .30 a piece. Make sure you knock all of the rust off of those head studs.

You'll definitely want to run those studs by a wire brushed/wheel before putting the head back on!

My '90 factory plating looked very similar too that. I have no idea what electrofusion it supposed to look like, but too me that looks like how aluminum looks in that it has a porous almost "granite" look to it....

I would have it nikasil replated, $180 done by powerseal USA, not including shipping..

The pic doesn't reveal much of the surface, but if that's the worst of it, you could probably get away with cleaning it up and running it. A fresh replate is always nice if you can swing it. That is definitely preferred to installing a sleeve.