If it is all beneath the waterline (where the bottom paint is), Take a small grinder and clean up the margins, and bottom of the gouge. (great place for the Dremel Tool). Get some MarineTex epoxy. I keep a small container of the gray and white. Fill in this area slightly proud of the surface. Let it harden, and take a small detail sander, or by hand, and sand it smooth, put some of the bottom paint (may be a good time to do this all around the water line--since that is where it tends to degrade first)
If it is above the water line, then a different repair. You want to fill that area, with mill fibers and polyester resin. Fair it smooth, and then apply gel coat, to match.
I like to have a 20 mil layer of gel coat. Certainly you can build it up with several coats, or apply that much to start with. Choice of application with a Preval sprayer or brush on. For a small amount, I tend to use a brush or plastic spatula. You want the gel coat to be "Fresh". Spectrum color seems to still make a small repair kit for the C Dory. If not, white gel coat, tinted with a very small amount of yellow and brown to match. Again the Dremel tool to clean out the gouge.
For 1/4" deep and wide gouge, no cloth is necessary. If you prefer, and have some cloth, you can lay in some random fibers along the axis of the gouge.