Yes looks like a "fork print" to me which brings up a BUNCH of maybies.
fork tubes bent
triples bent
front wheel tweaked
frame bent
Not that those are there but you sure want to be carefully looking!
first check is check smooth easy fork action.
Then careful eyeballing of alignment from the side and front.
This is not easy, it can be bent enough to need new parts and still be hard to see.
OK to the original question. Yes it's much easier to find a much better tank than trying to straighten that thing.
NOTHING containing water will reduce the chance of a tank explosion, unless the tank is full of water while you work and you can't get water hot enough to allow metal working.
I have done about every stupid gas tank trick known to man and many of them could be fatal!
The only way I know of to make a tank safe for torch work is to rinse it with a strong solvent, think acetone, then completely dry THAT solvent out before applying heat. Using this procedure is at your own risk also.
My take is gasoline vapors strong enough to cause explosion are trapped in the varnish on tank walls and bottom and especially in seams, until all build up is out heating can easily result in explosion.
Let us know how the inspection goes?
Back in the day story warning! After a thorough tank "rinsing" working dents with a torch in my rickety old garage. A serious oh FLUCK moment as a blow torch of flame erupted from the cap opening, a full three feet of flame, then that waiting for the disaster pause for inevitable explosion and unbelievable relief as the flame subsided and just went boop and blew out. Made me rethink the exposed paper backed fiberglass insulation in the ceiling!
PS you would not believe how BAD a gas tank looks after even a couple of PSI of compressed air blows the tunnel out like a pig's stomach at a buffet.