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Here's an answer from my carpenter of 20 years husband: "If you are going to paint it, you could tape over it, but if it's no big deal, I'd replace it, because you'll get a smoother finish."
You can spatula on a thin layer of drywall mud and then once completely dry lightly sand with fine sand paper wrapped around a wood block to even out. There will be mud dust doing this but all you have to do is cover up furniture, etc. and be sure to have the doors closed to other rooms. I've done this a couple of times in doing such minor drywall repairs and it works well. If you use drywall tape you're going to have to mud anyway (and actually have to use more mud) so why not save a step?
P.S. Always wear a doctor's type mask when sanding so the dust doesn't get in your lungs.
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