It depends on how deep the damage is. Many cast iron block engines that don't have factory sleeves are designed to be over-bored up to a certain limit and have a couple sizes of oversize pistons available to accommodate. For engines that have factory sleeves with a coating (like most aluminum block engines) you would have to replace the sleeve, but I don't think the FL120 has any limitations like that.
If the damage is minor enough that going to the first available over-bore will remove the damage, I'd go for that route as it's likely to be cheaper and will return a perfectly good result. If the damage is too deep to clean up with an over-bore, then you have no choice but to bore it and sleeve it.