Update:

Did a compression test on the car today.

Cyl 1: 175psi
Cyl 2: 125psi
Cyl 3: 175psi
Cyl 4: 175psi

So definitely a problem with cylinder 2. I then did a wet test, added about a capful of oil into cylinder 2.

Wet Cyl 2: 150psi

So it helped a bit, but not enough to conclusively say it's the rings. I think if it's the rings it would shoot up 40-50psi with the oil. Another 25psi might be the valves? What do you guys think? I bought a can of Seafoam and I'm wondering if I should try it out to see if that will help it out. It it indeed is a bad head, maybe I have nothing to lose by using the Seafoam?

Advice much appreciated at this point...