My website was hacked, will that affect the rankings permanently?

How does someone prevent their site from being hacked?

Google's overriding goal is to show the most relevant sites. If your site is relevant, would it make any sense for Google to punish you for something that's (mostly) out of your control? Just get your site back in working order and carry on.

Depending on how fast you have clean/fix the problem.

Once you clean things up, your website will recover naturally.

My website was hacked, will that affect the rankings permanently? No.

From my experience, it's affecting negatively only when the site has malware inside. After you clean it - rankings grow again. We had several clients which WP sites were first hacked and then cleaned. BUT it's a reason to always upgrade your CMS version and also to do not install any free plugins which are not well-known (for example, Yoast is okay while some other no-name seo plugin is not).

You won't be affected permanently as long as it is cleaned up.

There shouldnt be any penalties after the cleanup

Can't speak to hacked sites that aren't already ranking but I've had sites get hacked and tank then recover eventually once I'd cleaned it up