Only if you want to screw that cylinder!
Somehow that little sucker has to be removed, I'd keep at it with the magnetic fishing thing, even if you have to get a stronger magnet, leaving anything in that bore will eventually end up down the side where the rings are and jam scoring the bore forever.
Sorry that has to come out, try hand cranking the motor until the piston is at the top, don't spin it with the starter motor or kicker as the chance is that the washer will move down the side of the piston.
Also check that it "did" fall down there and is not just lying in the fins area...merry Xmas.