That pool cannot be repaired without taking it down. It looks like the wall is very close to being completely rusted through in that spot. Once you have rust like that a good storm can cause that pool wall to fail. Water is constantly seeking level. When it is contained in a circular tube like a pool, it pushes out equally against all of the wall surface. The wall's ability to resist that constant force provides the structural integrity of the pool. When one section of the wall becomes weaker, the forces pushing against it encounter less resistance and the wall eventually fails and will rip like a piece of paper. This is very similar to what happened to my pool during Hurricane Harvey 5 years ago. You can click the link in my signature to see photos of what happened to my pool and a couple of others. I can also state that the rust on the inside of the pool wall will be more extensive. Repairing this pool is not a small job. If you are the original owner of this pool you may be able to file a warrenty claim with the manufacturer and get a new wall at a pro-rated cost, plus shipping.
Your best bet to save that pool is to take it completely down, get rid of all rust, repaint, and reinstall. Whether or not the liner can be saved depends on how old it is and if you are able to store it in a moist environment to prevent shrinking.