Great pictures.. Yes, that is probably the cause of the bouncing/knocking you are hearing.. Shouldn’t be hard to put a new retainer set in at all.. but do pull the valve and check the seats.. make sure it is not scarred or burned.. if so, you can re-lap it to get it back in shape. Strange how #1 and #3 are a good bit messier looking than the others.. Ya may have a bad valve seal on the #3 intake.. ?? ( I don’t know if that engine has seals there.. but if it is not a seal, then it may be excessive valve guide clearance ) The fact that the knocking didn’t change when you pulled the plug wires usually means that the bearings and pistons are pretty much OK. Did you find the piece of retainer that is broken out? While ya in there, it may be prudent to pull and check the other retainers to make sure you don't have another getting ready to turn loose. Good luck with it.