Re: 65 hp triple
Looks like you have a 1975 Mercury model 650
I have the same engine, I bought from a guy that dumped a ton of money into it.
I found that it had a rotten wiring harnes and fixed the engine by cutting out the harness plug going to the external harness and connecting the wires directly.
Parts are available, and you can rebuild the engine if needed
I would start by opening the exaust port cover and checking the condition of the cylinders.
May not hurt to pour some seafoam into the cyl and let it sit for a day or two and check the compression again
It could be as simple as a stuck ring.
A dist cap will run you about $200, and a rotor will run you about $175ish, I would check those to start and confirm they are in good condition (I lucked out with mine, they look almost brand new).
If all else fails, part it out
I'm interested in a spare lower if in good condition.