Looks like you should put a new hood on the car or at least a used one. Most body shops are going to fix that area and just blend the color out over the rest of the hood then clear it. With the condition your hood is in with the peeling and fading it would be way easier to get a used/new or aftermarket hood and go that route. Just my two cents. Also under that fender you might find some damage to the upper rail/apron area.....

Josh