New Owner of '86 Mustang

[Teacher]

Hello, Mustang people. I must admit I do not know that much about Mustangs. I ride a Harley and do most of the maintenance. I've worked on cars before but most of them have been Chevy Camaros. So now, maybe I've seen the light. What I need to find out is what do I have here? This Mustang is a 1986 "LX" Vin #1FABP28M7GF325491. Can any of you experts help to make me understand the code and let me know what I have? I didn't have to pay much for this car, but I know I will have to spend some money to get it running good. The hatchback is really rusting. Do they make a fiberglass replacement? When I put it into gear it clangs pretty good and makes a squeek squeek squeek until I get up in speed. Could that be U-joints? I thought it was a wheel bearing at first, but if I take it out of gear while rolling the squeek stops.
Any help would be appreciated.
Thanks, Teacher