Checked Sail Boat data, yes a Pearson 31 keel should be lead.
I would be interested to find out what the cause of that blister is.
If it is in fact crevice corrosion to keel bolt, like I said, run. Unless you have a nice big barn on your property to set up shop in, time to spare, and money to burn I wouldn't recommend getting into a major project like dropping the keel and replacing the keel bolts. If you had a yard do it then the cost of hauling and storage per ft/day would be more than the boat is worth.
One other possibility (that could be easier to swallow, and fix), maybe the keel was sheathed in glass with polyester resin? Could this be a typical osmotic blister? If true, grind out blister, clean out, let dry, repair with epoxy fairing filler, repaint and sail.