I would replace it in a heartbeat. I don't know your situation, but I am trying to establish myself in my area and would rather make someone happy than not.
Was this a "limited edition" print? if so, then you're kind of on the hook legally. You could make a new print to replace it, but you'd have to mark it as such, and reclaim the damaged print to destroy it. .
I have a friend who publishes limited-edition images, sometimes analogue or digitally processed/printed and he mentioned that, once he has done the 20 or 40 or whatever, he will destroy or delete all supporting negs or files, and would never produce any more for any reason. As he said, that's his duty to the buyers who've supported his efforts.
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