Pretty bike.
For the paint/rust, rub the bike down with an oiled rag.
For the hills swap the rear cog out for something with more teeth. The English 3 speeds were geared ridiculously high from the factory. I typically put a 20 or 22 tooth cog on the rear.
That $25 price tag may have seemed high at the time, but it has paid for itself several times over if it is like my old Raleigh

Mine was the same price in 1982 and has been ridden and ridden hard, it is still ridable, just needs some serious TLC.
Aaron
2whls3spds