I'd probably buy another one, but it's kind of difficult to see how exreme the rust is in the pics. It it's just surface rust, you could save it, but all of the paint is going to need to be stripped and the rust removed. If you have a media blaster in the area that would by far be the easiest, (and most expensive). It would be very hard to strip some of those areas without blasting. You could do the best you could with booger wheels, (works like a wire wheel), and spot blast what's left. Don't sandblast the large flat areas or you'll warp the hood, (the professionals have special techniques and equipment and generally use soda, I see EastWood is now selling D.I.Y. setups). When it's all stripped, scrub it down with POR15 Metal Ready and scotch-brite pads. This will remove any remaining rust, etch the metal and leave a protective zinc coating. If you feel great about the resulting surface coat it with epoxy primer, if you have any doubts use a few coats of Master Series first.
yeah... pop on a new hood is the easiest way to go, 'specially if you dunn have a qualified welder handy. a decent search for parts cars frequently reveal clunkers with good hoods. this part is not the first to go .. doors and quarter panels generally suffer much worse.
but, a skilled welder should be able to fix that in under a hour of shop time. then it is just off the to body shop for a quick respray.
I bet you could spend under $75 at the welder shop, and under $200 at the paint shop.
Here's the same piece after taking the whole corner down to metal and then filling the separated metal with fiberglass and clamping it. After the fiberglass dried I primed it with cheapo Rustoleum rusty metal primer. Cause I'm bread line.... Bread line and less.
(I plan on putting rivets where the 2 red spots have been photoshopped in the photo.)