My series 3 and an engine swap question

Hello everyone. I have had this series a long time and its blow a hole in a cylinder and broken a rod. Its a 2.25 diesel.

I use it as my daily, i don't go that far just into town and around the countryside roads.

Do you think i should rebuild the engine or swap it out for something else?

The 200's seem a lot of money and i don't know what else to really put in it. If i rebuilt the 2.25 would it be a fairly reliable engine for what i do?

Thanks for any advice