It sounds like the tach is questionable at best. There might be a selector switch on the back of it to set it for 4, 6 or 8 cylinders. Cycling that switch several times may help if it has a bit of dirt or corrosion on it. Otherwise, it's best to confirm the wiring is good. Break out the VOM and start testing the wiring from the gauge to the dizzy and the ground. If all that is OK, I would say time for a new tach. As was stated earlier, it's probably the first gauge to go of all of them.
Another thing to confirm is that when it went to 5K RPM did the speed slow down while the RPM increased? Kinda like the transmission was slipping? Have you confirmed that the tranny fluid is full and a nice bright red color and it doesn't look like a strawberry shake? Have you changed the tranny fluid at all?
As for the hesitation, that is normally taken care of with proper tuning of the carb idle mixture and accelerator pump linkage but I would highly suggest doing a complete tune up to eliminate any possible hardware issues before that. I know it's been discussed here before on properly setting up the idle mixture and accelerator pump linkage.