It’s hard to tell, but it looks like the plastic insert might have broken inside the prop? If that’s the case, you just pull the busted up plastic out and get a new insert.
Agree with John. That is just the plastic spacer in the pic. To see the hub bushing, you need to take a pic of the other side of the prop.
Easy test. Replace that broker plastic spacer. Re-install prop. Put the engine in gear. Then grab the prop and try as hard as you can to turn the prop. If it moves on the rubber bushing, then it is spun. (If the prop turns but the prop shaft stays in place it is spun) If it tight, put the motor back in neutral and spin the prop on the hub making sure it spins evenly and is in balance. If it wabbles, you will need to have it fixed at a prop shop.
-J.