Teresa you need to carefully take apart the damaged square and then make a pattern and a new block to fit in that place, you most often need to hand sew that block in and it takes alot of time, but some quilts are worth the time it takes to repair them... This one has only 2 blocks that need a complete new block, ( prewashing fabric is a must here)
there are a couple other pulled seams that need to be hand sewn but for the most part it's in good shape, stained yes, but it's going to be for show not use... Hope that explains it for you...