I don't see any reason why it can't be patched. I've had dozens like that in my DD's in that location and never once had an issue getting it done. If you plan to track or spirit drive, just replace it. If not, I see no reason why you can't get it patched. If they wont do it just take the nail out and plug it yourself to see if it will hold air or not.
Word of caution. Take the wheel off the car and take it to the tire shop by itself. A LOT of tire shops are now trying this tactic to get more sales. "Sorry, we can't plug it and we can't put it back on the car like that due to safety concerns. You have to buy a new tire or use a spare."
98 Red GTS - Corsa exhaust, Belanger Hi Flow Cats, Smooth tubes, K&N filters, Custom Stereo, Forgestar F14 wheels, BC Racing Coilovers, HOWE radiator, Tuned by Dan Lesser from Viper Specialty Performance.