Saw more than one of those in my daze at the Jeep place. Fixing it is nasty and tedious but not rocket surgery.
Okay, first thing: don't do this on concrete! Rust stains are hell to remove.
If one freeze plug is rotten then the rest aren't far behind. I recommend pulling all of them you can (and there are two behind the flywheel!), then take the water pump off and flush the block with clear water while the FPs are out. Do this at least a few times, then knock in some new plugs. Then it's time to replace (not reinstall) the water pump. There are cheapo pumps out there which have cheap stamped steel impellers that literally rot away. See if you can find one with a cast aluminum impeller. Check the thermostat housing, they are known to rot from the inside and are cheap.
I'd also reverse flush the heater core and the radiator with clear water, again several times. The radiator reverse flush works best if removed from the car and turned upside down, you stick a garden hose in the nipple that goes to the water pump and turn it on full blast. All kinds of crap will come out of the radiator. Obviously the heater core is a bit more difficult to do this with.
On that, just clamp a piece of heater hose to the outlet side of the core (that's the side that goes to the water pump nipple) and stick your garden hose in there, then turn it on; water will now flow out of the inlet hose which is the one coming off of the thermostat housing. I saw one disgorge what looked like a dog turd, it turned out to be Stop Leak. The heater worked a helluva lot better after that.
Reassemble everything, then flush with a chemical flush. Do this twice and leave the thermostat out whiile doing so (more coolant/chemical flow). Follow with a last rinse of clear water, then install a thermostat, fill with antifreeze mix and anti rust.
Check again in about 6 months, don't be surprised if the coolant's nasty again due to crap flaking off the inside of the block and working loose from various corners. Flush again with chemical flush and clear water and you should then be good to go for a while.
Be aware it's a PITA to burp air out of one of those things, quickest/easiest way to do it is to take the highest heater hose off while filling and wait for the coolant to run out of the nipple on the thermostat housing. Otherwise the engine temp will shoot to the moon until the thermostat finally decides to open.