Don't respray or mess with the decals! You'll devalue the bike.
Figure out who "KN" was. Presumably a pro in 1978. I didn't think TI Raleigh had a cyclocross team. Maybe some TI Raleigh riders also did cyclocross in the winter?
Yes, do not respray it, do clean it up.
Probably a search through Cycling news magazine from 1978-79 Cyclocross season coverage might lead you to information on the team members, team and rider.
And ditch those pedals.