Shubunkin goldfish should grow to 10" long easily and common goldfish grow to 12". Goldfish have been scientifically proven to suffer from stunting if kept in a tank that is too small for them, this means that externally they stop growing or "Grow to the size of the tank", but their internal organs continue to grow and they often become listless and die prematurely for a variety of reasons. Sometimes internal organs burst due to the pressure inside of the fish.
This is why WD presumed you were planning on rehoming the fish, a 10gal tank is only suitable for goldies until they're around 2" long, at which point you'll start to risk them becoming stunted.
Re-homing means finding them a new, more suitable, home to go to. Such as a really large coldwater tank, or a pond. Some areas even have 'fish rescues' when people take in unwanted fish, some fish shops even take in unwanted fish if you ask them.
The white spots are a disease called white spot. It's caused by the ich parasite and often comes on when fish are exposed to high levels of ammonia or put under alot of stress. In this case I am pretty certain the high levels of ammonia will have caused it. The ammonia lowers the fishes immune system, I'm not sure if it's purely cause the fish is being poisoned, or if the fish actually become stressed and (like a human) their immune system is lowered by stress.
Eitherways you'll need to do 2 things to treat the fish, you'll need to pick up some white spot medication from your local fish shop and a liquid based test kit for your water. You need an ammonia test kit and a nitrite test kit (or the full API Master Test Kit if you have the money to hand).
You'll need to start the course of medication as directed on the bottle, but you'll also need to keep the ammonia levels down with water changes. This is a pain as it means you have to redose the water each time you do a water change (Ie. change 20% of water then you have to dose 20% of the original dose), but if the fish are exposed to high ammonia AND white spot, it can often lead to death so you do need to keep the ammonia levels below 0.25ppm.
The whitespot parasite itself normally isn't a killer if you catch it and treat it fast.