As crusty as some of that line looks, I'd be replacing it anyways.
Is it safe? Depends if the line ends were bubbled for hose retention, among other things. Functional? Yes, short term; but as I said, I'd be replacing the hardline long term.
Remember, you'll be having hose connections at your tank, pump, filter, and possibly carb, so I'd do anything you can do to minimize the rubber (and number of connections) you have in the system.
Also kind of depends on what your plans for a fuel system are- mechanical or electric pumps, regulators, carb/EFI, yadda yadda.