Is this fair price?, I seriously doubt it! Options

[conus00]

Yesterday afternoon when I was leaving parking lot my car suddenly stuttered and died. I tried to start her again but no dice. She'll crank but would not start.
My assumption was immediately fuel pump, because it used to whine a little but now when I turn the key to ON position it won't even make a sound.

Long story short: I broke down about half mile down the street from Tansky Toyota in Dublin OH. I used one of my three AAA tows and had her towed to their shop. Today I got a phone call from the manger telling me that the car is throwing two codes: fuel pump and knock sensor.
I am not mechanically 100% so my question is: what are the chances of pump going out at the same time as the knock sensor?

Also, the dealer quoted me over $1200 (without the tax) to fix the car. That seems to me WAY too steep.
What are your thoughts guys?