Wow, that is some major damage. There is a really good book I have in my library:
https://www.amazon.com/Quilt-Restora.../dp/0939009838
If you are serious with this commitment, I suggest you get this book. She has excellent instructions. Mostly what you can do is applique over the damaged area. This is not going to be an easy task. I can tell that some of the damage has been done by mice. That star block is going to be very hard. Good Luck!