It is not wallpaper. It is a wallpaper like material that was bonded to the plywood at a factory using non-water soluble glue. You can feather out the rouge edges with sandpaper and spackle them. After sanding, prime and
paint right over it, or, you can actually hang a more attractive wallpaper. This is what I did in one past RV, do to the ugly "wallpaper" they had used..