I'm 32 and MRI is showing lose of cartilage in the right knee due to severe arthritis will I need knee surgery severe pain during activity or still?

Conservative first. I prescribe therapy, nsaids, weight loss (if necessary) and possible bracing and steroid shots first. If you fail this, then surgery may be needed.
Surgery. Need good thorough exam, trial of conservative treatments, good imaging. Check with your orthopedic surgeon.
Arthritis. Arthritis is due to cartilage loss, and the amount of cartilage loss will tell if you needs surgery. Please talk to orthopedist.