I would say good luck on this . My grandfather had a '66 Penn Yan with same drive but the 150 hp 6 cylinder, Quite frankly the tilt never worked since it was new, always had issues. I cut my boat maintenance teeth on that boat with him
This is pushing my memory back but originally his had a white pump that took atf , later replaced with a metal black pump that took 10 w oil. I think this pump came off an MC-1 but it must have only had tilt not trim with the later 3 button switch.
I think this is the parts list you need from the later 67-69 MC1 the early ones had tilt only and the pump should work for your application
list both tilt and tilt/Trim systems
Lookup MerCruiser 120/140 1967-1969 engine & stern drive by component and buy discount parts from our large online inventory.
www.marineengine.com
Hydraulic system should basically match yours
MerCruiser 120/140 1967-1969 mercruiser 120 and 160 with power tilt parts list parts. Buy a genuine Mercury Quicksilver or aftermarket part.
www.marineengine.com
Pump assy
MerCruiser 120/140 1967-1969 hydraulic pump assembly parts. Buy a genuine Mercury Quicksilver or aftermarket part.
www.marineengine.com
Unfortunately most parts are not available but with the part numbers you may find used on ebay etc ?
What is the pump doing or not doing? Did you maybe consider taking it to a hydraulic repair shop and see if they can rebuild it? I think brushes in the motor are replaceable ...
I know this isn't what you want to hear but If you really like the boat and want to keep it best bet would be to find a alpha gen one or newer transom and drive tear out and swap it all over so you can get parts