A similar thing has been the topic of debate for a while now.
Can a man swim faster in treacle than in water? The theory goes that, though the treacle is a more viscous medium and impedes the swimmer by means of hydrodynamic drag, the swimmer is able to impart a much larger force on the medium and attain a higher speed per stroke.
Personally, I think it's knackers. Notwithstanding the fact the poor old bloke will be absolutely hammered after three strokes, drag increases by a square of the speed - and power required to overcome it increases by a cube - so if the swimmer goes faster, drag will increase, and even if he does manage to impart a larger force, it needs to be as large again as the increase in fluid viscosity AND the cube of the speed.
I would say that, unless the boat explodes or the driver gets totally smashed on fumes, the boat will be able to go much faster in rubbing alcohol than water, as the total power available to the vehicle is finite, but the decrease in drag by a square and power required to overcome it by a cube would permit higher speeds.
For reference, aerodynamic drag can be calculated by the following formula:
Frontal area (sq.ft) x 0.00256 x Coefficient of drag x speed x speed
(the amount of stuff presenting itself to the air, multiplied by the slipperyness of the stuff, multiplied by an air viscosity fudge factor, multiplied by the square of the speed)
Power (in hp) required to overcome it is
Drag x speed/375