Well it going to need over sizing. Now the old IPL may indicate sizes other than .020 over but usually only the .020 over is available nowadays.
As doing the honing it take a ridge hone to true up and resize the cylinder; flex and ball hones won't do it. They will only amplify any oval and/or taper of the cylinder. The cylinder appears to be aluminum only so you need stones for aluminum 180-220 grit. My Lisle 16000 uses 180 grit stones.
Truing means the removing all scoring, tapering, and oval (Egg Shape). One or more of these can be present on worn cylinder.
Now the crankshaft journal looks good from what I can see especially for an engine as old this one is.
