Hmmm. The pitting in the toe board area looks pretty severe. If you try welding in that area, you'll blow right through it b/c it's so thin. The right way to do it is to replace it with fresh metal, but that's a call you have to make. What area are the holes in, the floor or the toe boards? I can't tell from the picture.
You could take a wire wheel to it and then paint it with Rust Bullet if you don't want to patch anything, but it's only a band-aid in my opinion. Do it right the first time and you won't have to worry about it later on.
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