ahhh my poor friend, yes it is. I just threw some pics up and good folks informed me of my rot. I ended up loosing half a cola on the first picture. I'd take a careful peak around it. I found more on mine when I double checked.
As in is that area salvageable? Anything with rot is immediately garbage and unhealthy. As for all your options, definitely remove but how much and how far around it to trim is the question, because not all spores are visible. It's just the concentrated areas that are visible.
Now thinking off the top of my head, I'd researched about hydrogen peroxide baths if you're harvesting. I wonder if you could mix the same ratio in a spray bottle and spray the surrounding nugs for a foamy reaction