repair horizontal foundation crack

Folks,

I need advice on the least expensive way--without being stupid--to
repair a
long horizontal crack that extends nearly around our basement block
foundation, about 18" below ground level.

The crack was revealed during the inspection of our 60 year-old house,
which we bought this summer. We negotiated a $6500 credit, based on a
contractor's repair estimate, to dig out the outside foundation and
install grip-tite style wall anchors. But we have already spent most of
our savings on the down payment, so I am wondering if there are less
expensive alternatives.

The crack looks quite old, and does not appear to be getting any worse.
There is no evidence of the wall bowing or buckling. There is probably
some water coming through the walls, but our basement is very dry
because of a good french-drain and sump pump system, which was
installed about 7 years ago. (I don't know why they did not repair the
crack then.)

We may end up selling this house within 5 years. If I just cover it up,

we will have to give the next guy credit.

Finally, there is also some kind of thin metal strip, which that is
badly rusted, buried inside the crack or even between the blocks. I'm
not sure if this was part of an earlier repair attempt, or something
built into the original foundation. I don't understand enough to guess.
Any thoughts?

Thanks for any advice.