The thought occurs that the pilot (or whoever acquired it as a souvenir) never knew that the spent round was lodged inside the blade. If he did, I think he would have removed it.
The bullet struck it seems the prop from the front. Perhaps the Camel was attacking a two-seater or a bomber?
I also seem to have found what maybe another bullet hole. If so, it's made a very clean penetration. The hole is about 0.5 cm in diameter and appears to have been plugged as a repair. The two plugs are almost opposite each other.
It might be returned fire from an aircraft under attack.
Camels were widely used for ground attack during the last German offensive of the war in 1918 where every German rifle and machine-gun would be brought to bear. That was certainly a bullet-rich environment!
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