Hello, Good Day. From the mentioned MRI
report findings, it seems that you have significant degenerative wear and tear changes of your hip joint involving the bones and capsule forming the joint. There appear to be irreversible changes. And unlikely to be cured with only medications and other non surgical measures. And if left untreated, it may cause further pain, movement restriction for you. In my opinion best and last option for you is the hip replacement
surgery as advised. This is a very common procedure these days and usually have good results with good surgical hands. You can take a second opinion
if you wish to. Make up your mind and follow the advise. All the best. God bless.