I would at least cut out the remaining rust and then clean the matching edges and use structural epoxy and blind rivets. I'm not a particular lover of welds as that is where rust starts due to galvanic action, plus if you don't weld sheet metal properly it will warp. Some might argue with me but more body shops are using structural epoxy especially on body panels and I have never had a problem with this method. I use FUSOR 208B for smaller areas that can be assembled fairly quickly, and 112B for areas that need more working time, available through the net or professional body parts suppliers. Before assembling I clean the surface to the bare sheet metal and then use a product called Piklex 20 to **** any microscopic rust, also available via the net, you just brush it on the area, wait a few minutes and then rub off the excess. Also predrill all blind rivet holes and then remove the burs prior to attaching.
Good luck no matter which way you decide to go
A couple of pictures attached , The clamps shown were removed after 4 blnd rivets were in place to hold the panel in position..