I would say you are lucky that the gauge returns to the actual reading. When my gauges started fluctuating like that - it wasn't long before they went to the Empty reading - and now they stay there all the time - no matter what. I haven't gotten around to changing them out yet.
You will most likely have to change out the unit.
You most likely also have the filter screens broke off. If you get down to 1/4 of a tank and the truck runs out of fuel - this is why. The broke off screen tube only reaches down to the 1/4 tank level of the tank itself. However, maybe your screens are still intact.
There are some posts on here about these issues - just do a search.
You will most likely have to change out the unit.
You most likely also have the filter screens broke off. If you get down to 1/4 of a tank and the truck runs out of fuel - this is why. The broke off screen tube only reaches down to the 1/4 tank level of the tank itself. However, maybe your screens are still intact.
There are some posts on here about these issues - just do a search.