If that is all the rust (not likely) you could possibly just replace the fender with a good used one. The clutch would probably be a few hundred bucks plus your time to replace it.

__________________
1979 240D- 316K miles - VGT Turbo, Intercooler, Stick Shift, Many Other Mods - Daily Driver

1982 300SD - 232K miles - Wife's Daily Driver

1986 560SL - Wife's red speed machine