Oil Dilution

I've got a 2006 Yamaha 4 Stroke 90/65 Jet. The dipstick shows the oil level way overfull and oil smells of gasoline. I'm guessing I've got a hole in the fuel pump diaphram. Could this deterioration of the diaphram be caused by fuel with 10% ethanol mix ?
What's the chance my engine has been damaged by running with this diluted oil ? I use Mobil 1 10W-30 Synthetic Oil.

[boats.net]

I would suggest taking it to your dealer to determine problem and percentage of ethanol.