will reinstalling mountain lion fix image retention

Avoiding image persistence on Apple LCD displays

It's unlikely that has a thing to do with OS version. But it you wish to reinstall Mountain Lion:

Erase the drive.

Reinstall Mountain Lion from a backup.

Since your computer can run Mavericks you will no longer be able to re-download Mountain Lion. However, if Mountain Lion was pre-installed on your computer, then you may be able to reinstall it by going through an Internet Recovery:

Install Mavericks, Lion/Mountain Lion Using Internet Recovery

Be sure you backup your files to an external drive or second internal drive because the following procedure will remove everything from the hard drive.

Boot to the Internet Recovery HD:

Restart the computer and after the chime press and hold down the COMMAND-OPTION- R keys until a globe appears on the screen. Wait patiently - 15-20 minutes - until the Recovery main menu appears.

Partition and Format the hard drive:

1. Select Disk Utility from the main menu and click on the Continue button.
2. After DU loads select your newly installed hard drive (this is the entry with the mfgr.'s ID and size) from the left side list. Click on the Partition tab in the DU main window.
3. Under the Volume Scheme heading set the number of partitions from the drop down menu to one. Click on the Options button, set the partition scheme to GUID then click on the OK button. Set the format type to Mac OS Extended (Journaled.) Click on the Partition button and wait until the process has completed. Quit DU and return to the main menu.

Reinstall Lion/Mountain Lion. Mavericks: Select Reinstall Lion/Mountain Lion, Mavericks and click on the Install button. Be sure to select the correct drive to use if you have more than one.

Note: You will need an active Internet connection. I suggest using Ethernet if possible because it is three times faster than wireless.

This may restore the version of OS X originally pre-installed on the computer.