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The little bit of surface rust can just be sanded off, but the area where its flaking doesn't look salvageable. You could probably clean it up, throw some bondo and zinc primer over the worst of it and have it look good, but in a year or less it will likely start to show again. If you're good on a tig welder it's really not that bad a job, but if you're like me and can weld stuff in a pinch, but it doesn't look pretty you may have to pay someone to do at least the welding part for you. I've seen people actually cut out the rusty section and epoxy or jb weld the replacement panel section on with a small overlap and hide the seam with bondo and glazing putty, but the overlap is a rust magnet as moisture gets in there and it's kind of a poor way to do it, but it would last longer than the bondo over the rust and repaint it approach.
& this afternoon
