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That would be the flex pipe. Looks like that one has been replaced once already as the factory one has a mesh over it. It can be replaced if you or know someone who is good at welding stainless. There are some muffler shops that will repair it. MB will replace the whole system for around $500 plus labor, or look for one from someone who has upgraded to an aftermarket exhaust.

I will be replacing mine this weekend with one I picked up used.
 
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