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M2 Jet pump problem, potential rebuild or need a new one? SOS!!! I bought a lemon :(

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Decided to do a routine oil change on the boat i bought on Friday and found a major problem.
Stator was full of water. Seal was gone and rear bearing was destroyed.
Since shaft lost rear support it was bouncing around. Impeller ate wear ring. It seems to be oval with 5-6mm gap.
I am really concern about front end. It may be toasted too, however, during front (gears) lube change, i found that liquid came out clear and blue, no debris in it.

What are my options at this point?

I am assuming in the worst case i need a new bottom end (whole new/used jet pump).
In best case i need new stator assembly, new impeller, new impeller shaft and new wear ring, which is a housing.

Please help, i am novice. It is my first boat.
I was driving okay. Would reach 50mph, but at the very top rpm it would capitate, I didn't notice it at test drive before i sealed a deal.

Contacted boat broker, to see if i can get my money (or some money) back, but i doubt it. Typical AS-IS sale of used boat.

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If it was running ok, I think your 2nd option sounds like a good plan: new stator & new wear-ring... possibly a new impeller. Chances are it will run much better! Take it one step at a time.
 
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