Do I sell my 2007 Kia Sportage or Pay for the Repairs on it?

Maybe it was something else and I misunderstood the mechanic. I didn’t realize rust could reach the gas tank. Does it?

I took a photo of each side of the rust but can’t upload it. I don’t know how to do that here.

The Kelley Blue Book value for it is only $500.

The amount I owe on my car loan for 16 months total is $3025.

I have 177,000 miles on my 2007 Kia Sportage. The tires are bare/bald and I can feel it go sideways sometimes which is scary.