OK, we can assume that the head is OK.
Now, we have to talk about your procedures. Over the course of this thread, you have posted some questionable mechanical actions. :-)
One, how did you do the compression test? Refer to
HERE for the right way to do it.
I don't know how much WD-40 you put in the cylinders, but to get it to jump up to 200psi, you put in too much. Besides, WD-40 is not the correct thing to use. Use oil next time.
And, the loosening and re-tightening of the head bolts you mentioned may be a problem too. That is not a good thing to do. It can mess with the head gasket and it might cause the head to not re-seal properly.
Can the block crack? Yes. But, you most likely would have seen anti-freeze in a cylinder. The contamination you saw in the oil was probably from the cracked head and failed head gasket from head #1.
So...at this point in time, I would suggest you take the head you have and install it with a new head gasket. I would suggest making sure to chase and flush out the head bolt holes in the block. An air compressor works, but canned air and lots of brake cleaner will work too. Ideally, you would also chase the threads with a real tap.
It is important to also to torque the head bolts in the proper order. And, you need to get the timing as close as possible to where it should be AND the valves need to be properly adjusted. You will need a new/fully-charged battery too.
After all of that is done, then check the compression. Doing all of this will put you out only the cost of a head gasket and some more of your time.
If the compression numbers don't look good, then junk it. You can't machine or test the block in the truck. Although, as I said above, I doubt it is cracked as at least one cylinder would look bad because it would have to crack into a water jacket and you would have seen AF pooling in that hole.
Good luck,
Michael