Times two on the "why" aspect. If you just got it, have you and your daughter (cool project by the way) checked it out, including perhaps a compression check as Ron suggested?
Have you been driving it much, and more pertinent to this, did it sit for a long time before you bought it? Motors don't like just sitting around, and you might find that changing the oil, adding a solvent-based oil additive (and probably some gas additive to absorb moisture and clean out some varnish), and then just driving it extensively, putting a lot of heating and cooling cycles on it for a couple of months improves things greatly. It has for many of us over the years.
If it's truly bad though, then you're on the right track. Maybe it's got 150k miles on the original engine without ever having a valve job, or the carburetor ever being rebuilt, or a water pump ever being changed. Then yeah, it's time to at least give it a full refresh.
Good luck whichever road you go down.
How old is your daughter? Already driving? Maybe already commuting? The '77 is a fun year, depending like any other year, on what all needs doing to make it habitable inside.
Safety first too, as I'm sure you're already thinking about.
Brakes, drivelines, suspension and steering. All are basic fare on a 41 year old cheap utility vehicle. Ford didn't lose a lot of sleep figuring out ways to make these things better for the road. They did do that of course, but it was in very small steps. So neither of you should be expecting some version of a modern vehicle when driving.
They're pretty good in fact, but only as compared to other sixties-era trucks.
Maybe you're already a family of old car people. If so, you're gonna have a lot of fun with this one.
Paul