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Doesn't matter that's a body part so not a place you should use a jack, Frame, Bumpers and axles are places you can use a jack, and bumpers can be marginal so stick with frame, lol
That is a lot of rust, and it is not a proper lift point. A bottle jack should use the lower shock mount it the rear. At least that is what my 02 owner's manual indicates. When using a lift, I use the frame.