Series 3 Old Head Views on Piston

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That looks well worn but really you need to get the pistons/ bores measured at a machine shop and go from there.
 
The piston has some skuff marks, more importantly is there a significant step at the top of the bore?
If the step is not to bad you may get away with honing the bore and fitting new rings or pistons depending on the budget.
If the new pistons come with a bottom (skirt) ring I would leave it off.
How far you go is up to you for time and money, you could get a few more years before the eventual rebore.
 
not too bad at all considering its age, but measure bores across the block just below top of ring swept area a measurement fore and aft will give you the size it started out as
 
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