Any rehab is only temporary at best. That rust is just some of the worst i have ever seen.
So, replcament wheels are the best choice.
If you have or want to keep the genuine wheels, I suggest the following.
Stabilize the rust. To do that, you need to use a rust neutralizer on it. It amy just cause it to disentegrate.
Then, you need to try to build a foundation of some sortt to support the axle. Dukes idea of a sleeve and washers will work. JB weld will help hold it all together. After that, you might be able to fill it in and then paint it.
It looks like a hopeless cause to me.
Personally, I don't like covering a turd with paint and cal it restored. No offense to anyone who fills
or uses paint to try ot match the original. In this case, I just don;t see enough (If any) good material to work with.
I wish you luck.
If anyone can make it work, its the Duke.