New Shaft. There are countless sources for material from precision ground to standard bar stock.... And it won't cost much.... Battlers connection , smallparts, mcmaster, local ace hardware, they all have 1/8" rod of one form or another... (assuming it is 1/8")
Back when I was a college student, I used to straighten feathering spindles, and it was a royal pain to do compared to what they cost... but then my time was free... and so was large lathe access and proper indicators for that. I would argue that for your shaft it is not worth the time that could be spent on other parts of the boat.