I don't know what fuse that is.

Looks like the engine was burning a lot of oil. There appears to be rust at the top of the one cylinder wall but hard to tell from the pics.

Is this from the 3L that you bought?
BTW, the cylinders don't look bad at all. 60K miles and the cylinders have the crosshatch marks in them and look good.
I agree you'd want to put in new rings...assuming the cylinders are all smooth and still retain the crosshatch marks, don't use a hand hone or the new rings will wear out faster and not seat. If you use factory rings that is. If you have discoloration, maybe 1000 grit fine sandpaper to gently check it out and remove it.
You need to do valve job. At a minimum, have the guides checked and at least lap in the valves if there is no pitting in the seats. Should just have them all done at a shop, they used to charge around $60 a head and you can supply them with a new set of Ford Valve seals. I'd speculate this engine could have potentially more than 60K miles on it though. At this point it doesn't matter if you put in new rod and main bearings, rings and valve seals with the valve job.

Former owner of '99 CSVT - Silver #222/2760 356/334 wHP/TQ at 10psi on pump gas! See My Mods '05 Volvo S40 Turbo 5 AWD with 6spd, Passion Red '06 Mazda5 Touring, 5spd,MTX, Black