You didn't say what species you are working on, but from the picture looks like Tecumseh. Sometimes it is more cost effective to just replace the whole starter assembly.
If it was mine I would re bend the tab on the spring that go's into the center hub and just use all the parts you have right there. You might have to use a little heat to do so. If this is a problem to you somehow I would say buy new. I have done it a good many times and they work and last just like new when done.
The spring is badly bent and needs to be replaced.
If you can imagine A slotted into C then the spring rotating in a cloacwise drection it should be obvious that it will bind on the big 180 deg bend.
While you can bend them back into shape it is only short term and will break whaere you straitened it because that area takes a pounding and is now weakened.
Generally B will locate into a slot on the outer cover and you reassemble by placing A through the sot B locates into which is then slotted into C
The whole unig gets held together and you wind the spring through the "B" hole onto the pulley.
After the B end slips through the hole without catching the 3rd time you clip a pair of vice grips to B to stop it pulling through, wonder why you did not do it that way in the first place.
Once the spring is fully wound in it is in the recoil position so holding the pulley tightly against the top cover you slip the pull rope through from the inside, get it through , forget to put a knot into it, let the pressurre off and go back to square one, feeding the spring through again.
Really easy once you get the hang of it, which you will forget by the time you have to do it next.
