Thanks for posting your query.
In simple words, your MRI
shows that a fibrous band between knee joint is torn, and medial cruciate ligament
(MCL) which stabilizes keen joint and holds bone is sprained. Certain amount of excessive fluid has collected around or within the joint of your knee.Cartilage
under knee cap is damaged. Bones of thigh and leg are rubbing eachother at knee joint.
Yes you need surgical repair so that further damage can be prevented and normal function regained.
Hope it helps.