I decided to use electrolysis to remove the rust. So I set up the zap tank:
I did this on the back porch because the process emits Hydrogen, and I did not want to re-enact the last flight of the Hindenburg at this time :-)>
Two and a half hours later the rust was gone:
I will use some steel wool and oil to clean it up some more. Then I will refinish the handle, sharpen the blade, and make a sheath.