You lucky dog.
I was a boat builder in my last life and have built wood canoes of all types, including wood/canvas. I've rebuilt junk canoes and brought them back to life too.
As far as the inside goes, I can't tell what those streaks are on the planking. When it comes to varnish, you can either sand off the loose and chipping varnish and re-varnish, or you can remove all the varnish down to the wood and re-varnish. If you do the latter, the inside will look nearly new. However, the character of old wood inside the canoe is what makes it a great boat. Old canoes do not need to look new, and shouldn't.
If you choose to remove all the old varnish, you will need to buy a varnish/paint remover followed by a cleaning with TSP cleaner. Then three or four coats of quality spar varnish, not Home Depot spar varnish, but the good stuff. I cannot stress enough the difference between crappy spar vanish and the good stuff. The link I gave you is the best spar varnish on the market. Don't let the price scare you. It's worth every dollar. THIN coats of varnish must be applied. THIN coats. Good spar varnish dries slowly and will run if you are messy. Spar varnish is for outdoor use. It's more flexible (not brittle), water-proof, and has UV inhibitors to keep it from breaking down in the sun. Please don't use interior polyurethane. That's for your wood floor, not your canoe. -Spar Varnish-.
varnishAs far as gunwales go, that should be pretty easy. Some sanding and re-varnishing is all you need to do.
The outside can be lightly sanded to scuff the surface for repainting. Good marine paint will suffice. Jamestown Distributors is a great place to buy what you need. Many boat builders use their products.
Jamestown Distributors_
Here's the inside of the last one I built.