Is my honey fermented?
Promoted to answer as requested:

Bubbles suggest fermentation is going on. A vinegary smell suggest it's aerobic fermentation. I'd guess you're heading towards vinegar, not mead. Simmering will reduce water content, which will inhibit bacterial and fungal growth. A gallon weighing 10-12 pounds, At $8 to $10 per Lb, 10Lbs is well worth trying to rescue. I'd simmer off about 10-15% of your volume. Should be enough to reduce water activity below where things will grow, and get rid of any vinegar. Watch the stuff. It may still be a bit too watery. I've made a rough guess here.