The detection is inside what is purporting to be a jpeg file (o-nas_06.jpeg), which clearly is isn't.
The script tag inside basically creates the iframe tag to try and run a script from another site.
So it looks like the site may have been hacked as there should be no such script inside an image file.
avast doesn't completely disconnect your internet connection, it just stops the infected element from being downloaded and saved to your browser cache and run, e.g. it aborts just the infected connection. So you may well get the rest of the page display as there is nothing on that, if the infection was in the actual html code of the page then you wouldn't see abything.