Think I paid $230 for a fuel pump/sender for my '96 a while back. If you are willing to crawl under there and do the work yourself, a K5 is about the easiest rig ever to drop the tank in. It's easy to get to and very easy to balance. If it's not totally full, all you need is a 2x6 and a floor jack. When mine is empty, I can even just bench press it out of there while I'm laying on my creeper. I recommend a Delco (GM) brand pump, haven't had good luck with NAPA pumps. There's a seal under the cap, I think it's a Dorman part in the Help! section of pretty much every parts store for a few dollars.
Make your own fuel lines as stated. Don't forget to replace the fuel filter (they're like under $10).
PS pumps are around $60 I think after you turn in the core.
These are the prices in my neck of the woods at least.
Once you get the tank out, replacing a pump is pretty darn simple. The cap has a collar that you need to turn counterclockwise and then you lift everything up and out of the tank. Clean up the area first so you don't drop a bunch of dirt in the tank. Take a look in there with a flashlight, clean/replace tank if necessary, carefully (the float for the sending unit is real flimsy, be careful with it) put the new unit in there with a new seal, close it back up, put everything back in the truck. Dunno what you do about tank straps over there where that rust stuff happens...I live in the desert

Yours may need to be replaced.
Nobody mentioned it here, but make sure you check where the steering box bolts to the frame for cracks. There's a lot of threads about it and what exactly to look for, but that's the main thing I look for. Also, carefully inspect the crossmember under the engine. They are prone to cracking in a lot of places, especially near where the motor mount brackets bolt on. It's not a big deal if you find cracks in one of these places, but make sure you use it to your advantage when you're bargaining. The stock engine crossmember sucks and you probably need to do motor mounts eventually anyway, so you can replace it with a really good custom unit affordably. The steering box area is reapaired pretty easily if you have a friend with a welder and it's also a very good idea to address the issue there even if there's no damage yet.