Measuring the ring gap is not a way to determine ring wear. While yes, the gap would increase as the rings wear, one has no way of knowing what the original gap was when the engine was assembled. So, what you perceive as wear due to an oversize ring gap, could actually be very close to the original gap when it was assembled. Unfortunately, you would have no way of knowing what they were set at during assembly. While the rebuilding specs state clearances, in the case of rings, the minimum clearance is the most critical. The metal swells as it gets heated and if the ends are too close the gap can close and the ring can bind in the cylinder. The max clearance isn't as critical. While the spec should have been followed, I've seen engines where the gap was significantly beyond spec in size and it didn't create any issues.
Wolf is right, more normally the cylinders are the measurable wear point.
Usually ring issues show up in one of three instances:
Either the engine was overheated and it got hot enough to take some tension out of the rings, it was run with a loose or missing air filter, or it has a fueling problem that is washing the cylinder walls and preventing the rings from seating properly (rings aren't actually worn at all).
If it got hot enough to take tension out of the rings, the bigger concern would be cracking of the head or block, or a blown head gasket (showing as low compression in one or more cylinders). If it got dusted, then a hone and new rings will usually cure the problem (assuming the bores are still in good shape and mic out within spec). If it's a fueling issue, cure the excess fuel and often the rings will re-seat.
As requested above, you need to mic the bores in both directions near the top to determine how much wear and how out of round they are (mic below the ridge if there is one). It will tell you how worn the bores are and how to proceed next.
I believe that block is sleeved. The rebuild kits come both ways because often guys won't re-sleeve the unless absolutely necessary because it's more expensive. No point in buying new sleeves and having to pay to have them installed and machined if they're not needed. Often the existing sleeves can be bored .5 mm oversize and it will be just fine. That's why you'll see rebuild kits offered in oversize. One really only needs to re-sleeve if one wants to go back to the original bore size for some reason, one finds a crack in an existing sleeve (remember my overheating comment above), or if the existing sleeves are worn past the point of being able to be bored oversize.
Please keep us posted on what you find.
Good luck,
Steve