Replace or refinish hardwood floors
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Need to refinish floors
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In order to fix the sun damage, the only way to do this is to fully sand and refinish the floors. You can NOT add stain on top, and while you can add poly on top (via a screen & recoat), it definitely will NOT solve this issue.
When you refinish the floors, you can easily change the color. The darker you go, the less noticeable the damage will be. It's also possible that even if you do natural, it won't show any damage...it just depends on how deep in the wood the damage is and you won't know that until it's sanded.
Regarding refinishing vs replacing, I would lean towards refinishing (unless you want to spend a lot more money). As a rule of thumb, it will probably cost you 6-10 times as much to replace vs to refinish.
Your wood is perfectly good...it just needs to be sanded and refinished. You could choose to add wider planks in the new area, or match (there generally is not a big cost difference). But, I would match with unfinished wood (not prefinished) so that everything will match up well. You may find this article handy - should you replace or refinish your hardwood floors?