Do I have to fold the set? 100NL

[IAMMARN]

Absolute Poker $1 No Limit Hold'em - 4 players
Hand Converter Tool from DeucesCracked.com

CO: $85.75
Button: $202.50
SB: $100.00
BB: $259.35

Preflop: Hero is SB with 7[img]/images/graemlins/spade.gif[/img], 7[img]/images/graemlins/heart.gif[/img]
CO calls $1, <font color="#FF0000">Button raises to $5</font>, Hero calls $4.50, BB folds, CO calls $4.

Flop: ($16.00) 3[img]/images/graemlins/diamond.gif[/img], K[img]/images/graemlins/club.gif[/img], 9[img]/images/graemlins/club.gif[/img] <font color="#0000FF">(3 players)</font>
Hero checks, CO checks, Button checks.

Turn: ($16.00) 7[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(3 players)</font>
<font color="#FF0000">Hero bets $8</font>, CO calls $8, Button folds.

River: ($32.00) 4[img]/images/graemlins/club.gif[/img] <font color="#0000FF">(2 players)</font>
<font color="#FF0000">Hero bets $24</font>, CO raises to $72.75

Hero???

Do I need to fold the set here? Villian is 37/7/1.85 over 350 hands.