The photo definitely isn't where the upper control arm attaches, which is above the middle of the wheel. Those bolts are inside the engine bay. You appear to show near where the steering idler arm housing attaches. It is like a cylinder on a rod. The rust on the body above looks like from battery acid. Hard to tell how bad it is until you attack it. Could just be surface rust which will brush off with a wire-brush on a drill or might be able to easily push a screw-driver thru. Regardless, looks fixable. If you can't weld new sheet-metal to cover a rust-thru hole, you could use fiberglass then Bondo, if just an area of thin sheet-metal. Structural steel rarely rusts thru since so thick. Step one is to remove the tire. I put a Battery Mat under my batteries to absorb any acid vents. A sealed AGM battery doesn't leak.

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1984 & 1985 CA 300D's
1964 & 65 Mopar's - Valiant, Dart, Newport
1996 & 2002 Chrysler minivans