Also, take a small hammer, just a few ounces and tap around high up on the transom and you’ll get a solid, hard sound. Then start moving around any holes drilled in the transom and towards the area in question. If the sound changes to a dull thud then water has softened that part of the transom. If the rot is localized near that spot in the pic, it can be repaired but may not be pretty or color matched when you’re done. Look up surface or one sided fiberglass repair on YouTube that might help educate you on the process involved. Not insurmountable if small and localized but if it’s widespread then the transom is toast. Mine had to be replaced and was worth the job but a little pricey.
Creativity is just intelligence fooling around