As has been said this is an early Luger issued by the Dutch military and Rust means safe.
Before doing anything with it I'd join http://www.lugerforum.com
and post good pictures in their discussion forums. Jan Stills also has a Luger forum. You'll get answers from scores of Luger experts, some who specialize in the Dutch/Vickers pistols.
I would NOT rework or refinish it yet until you get dozens of opinions from the Luger sites. Honest wear, especially in a hundred year old firearm, is better than sand blasting/rebluing. This is a piece of history and everything that's happened to it probably is honest, refinishing it destroys that.
I wouldn't shoot it for now until your pictures are examined at lugerforum, there seems to be damage to the receiver ears (bent) plus it's just so darn old. Now that doesn't mean it's unsafe, just get expert advice. I do shoot my 1913 DWM 100 rounds a year but it's a common P08 model with mismatched parts so if something breaks (and it has) I can replace with another unmatching numbered part. Yours may have matching numbers.
Good luck and we'd love to see more pictures!!!