Is it permissible for me to recite the Qur’an on behalf of my unlettered father with the intention that he receives the reward for the recitation, and if it is not permissible, what can be done to compensate him for the reward of reciting the Qur’an?

Reciting the Quran is a physical act of worship that cannot be performed on behalf of a living person, except for Hajj and Umrah (definition) on behalf of the incapacitated. Prayer or recitation on behalf of another is not legislated. Your father can listen to the Quran, recite short surahs such as Al-Ikhlas (definition), Al-Fatihah, and Ayatul-Kursi, and frequently engage in the remembrance of Allah, supererogatory prayers, charity, and other acts of obedience. You should guide and encourage him in this.