Grinding and feathering sounds good, but if you don't care so much about a perfect finish, this will take < 1 hour overall.
PC Products 160114 PC-11 Two-Part Marine Grade Epoxy Adhesive Paste, 1 lb in Two Cans, Off White
Sold by: Amazon.com Services, Inc.
$14.66
This is amazing stuff.
Just mix 1:1, it will start as a thick paste that you can just form into the hole. It is incredibly sticky. After forming into hole, I usually cover with plastic wrap and mold to the shape I want with mu fingers. The plastic wrap initially sticks like mad, which is fine, since after it dries, it peels right off with a glossy, smooth finish. The color is slightly different than the C-dory hull, but it is quite hard, durable and completely waterproof. I also use this to seal the holes through plywood or balsa (like C-dory) cores by drilling out holes to a little larger size, and then either forming it around the inside of the hole edges (large holes) so the balsa is completely covered, or filling flat, then redrilling so there is epoxy all the way around with no balsa showing. You may find holes through your deck that aren't sealed, which is a bad idea, as water will enter and can rot the wood core. This stuff is hard, durable and waterproof. I go over the entire hull every time I pull the boat, because I often beach it and my hull gets nicked too.
You can sand it if appearance is important to you. I don't.