Yes, the marks in red are correct.
I agree, it was best to change them out. The car used to belong to a member here, see link below.
I purchased the Z in January, on Ebay from the person who purchased it from the member on this board. The car is now slightly different cosmetically from the link below. I replaced the aftermarket mirrors with a brand new, correct, driver side only unit. I've been mostly focusing on the engine bay and changing things to my liking as far as performance and the aesthetics of it. It's not a matching numbers car because it threw the #6 rod through the block prior to my ownership.
The car was very well restored and I really lucked out on the purchase.
Here's a picture of it now and one of the engine bay since my ownership.
I replaced the MSA exhaust system with a Full Fujitsubo header and exhaust system, de-chromed the valve cover and wet blasted, re-plated hardware, and obviously the rockers and lash pads.
I have a set of brand new old stock complete 40mm Triple Mikuni's i'm planning on installing next week so I'm very excited.