With book matched strips you can not throw out a damaged strip because doing so would disrupt the pattern of the grain. Instead you will need to repair the damage. If the strip is just broken you can glue it back together. In this case the edge of the strip was torn up and ragged.
I decided to make a "dutchman" for the damaged area. I started by planing away the damaged area with a block plane. I bent the strip slightly so the straight cutting action of the plane would create a shallow hollow in the edge of the strip.
I then found a piece of scrap that was a pretty good match to the area of the repair. I cut this to the approximate size and planed it down so it would bend into the damaged area easily.
I then applied a little CA glue to the newly planed surface and sprayed the repair piece with accelerant. Then, being careful not to touch the glue with my fingers, I pressed the two pieces together and held them for a few seconds.
This was enough to secure the repair in place. Now I just planed off the excess wood to leave a continuous, smooth strip. When installed in the boat this repair will be hard to find.