You can easily treat the rust and make it stay away. However making it look good is a different matter altogether!
To treat it then yes, you sand down to shiny metal (or use kurust) then apply primer. The best way to do this is to spray some in the lid and then paint it into the hole you just made. otherwise you’ll end up with overspray inflation and be doing a whole panel before you know it. Then you sand that down flat and spray some paint over. When spraying it is really hard to spray a small area. You need a quick burst of spray. You need to be a certain distance away from the panel so that the spray settles properly, but if you are that far away you get a circle of paint about 15cm across, so it is hard to get right. You may need to spray the can onto a piece of waste card first to clear the nozzle. One thing that I found useful is to make a piece of card with a small hole in it and spray through that but held 5-10cm away from the body, to make the spray area smaller, but this is quite hard to do. You could probably do better with a small box with an appropriate sized hole cut in it. The hole needs to be some distance from the body to allow the spray to diffuse so you don’t get a sharply defined circle through the hole.
If it’s not metallic, then you can spray multiple times, leaving it for say 15 mins in between (or 30 in winter), with loads of coats, then you can rub it down with some 800 grit then 1500, then polish it (T-Cut or similar) it and it might look ok. If it is metallic, well, then you have a much harder job on your hands. Metallic needs the lacquer on top, but do not sand the paint down before putting the lacquer on, it ruins the finish. It is possible to get a decent finish by not sanding the paint down but it is really hard and you need to get the paint layer spot on because you cannot sand out any irregularities like you can with flat paint.
I’ve just been through this (can you tell?) and I’ve managed to get an invisible finish *in some places* and it still looks shit in others.