That rod is the connection between the "bevel gear" (many threads about that one and the infamous recall) and the steering rack.
Depends on where the play is, if it is in the U-joint of that shaft, it is time for a new (or used) shaft. If it is in the bevel gear then it is time for a new assembly. While the BG is serviceable, there are no bearings in North america and Toyo won't supply anything other than a whole assembly.
It would be worth looking into the recall, didn't apply to mine so I had the pleasure of dropping $800 on a new one. Then again that is the CDN price, am sure you could get it for a lot less.
At least the rack is good, that's good news.