I absolutely agree with Prism 99, I would use some fusible interfacing, then I would find a matching section of the fabric and hand applique over the fix. Depending on the size of the quilt, I don't think I'd want to remove the binding and trim then re-apply the binding. Matching the pattern in the fabric should make it difficult to spot. I once appliqued black triangles to a Roman Stripe quilt when defective fabric grew holes. I appliqued over the black triangles, then re-quilted the lines and it solved a huge problem of possibly remaking the quilt. Of course it had to be the very first commissioned quilt I made, but they were happy with the fix and it wasn't really noticeable, thankfully.

Looks like a good place to place a flower, or name tag if it is the back or the quilt.

I would cut off the loose threads and put an iron on fabric in the hole and iron the torn piece back down or cover with an applique, of the same fabric, if possible.

I also agree Prism99 - great idea !

Sorry, but that is not a tear; it is a cut. Somehow that got in the way when you were cutting something else. How do I know that? Been there, done that. But the fix is the same. I would lay a small bit of batting inside before putting on the top layer, as it seems there is no batting there. It got cut away completely!