Foreman 500 jumping in 3rd gear, pics!!

Hey guys I had a 500 foreman that belongs to a good friend come in the garage. Said it was jumping when going into 3rd gear, but once locked in done great. I have it tore apart and 1 gear has a small amount of damage. And it appears to be 3rd gear. I want a 2nd opinion. I took some pics of the gear. I want someone to tell me if this is enough to make it have these symptoms thanks guys.

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Foreman 500 jumping in 3rd gear, pics!!-20150918_163321.jpg
 

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