Brakes "skip" as I press down. Whats goin on?

Normally you take off the cap and fill the brakefluid there until 1/2" below the edge.
But, looking at the rusty condition of that MC I would start thinking about replacing it real quick, and maybe even upgrade the entire brake system while you're at it if you like to drive/enjoy the car for a number of years to come.

Which do I get?upload_2017-12-24_17-5-42.png orupload_2017-12-24_17-6-3.png