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If it's a manual that will go to a clutch switch, automatic that will go to the neutral safety switch. It supplies the ground for the starter relay, the yellow wire supplies power from the ignition switch to power the starter.
I suspected that from the wiring diagram, but was not sure. THose critters that were living in the car chewed on everything. They chewed thru part of the radiator hose and drank the fluid. I found foour dead ones in the fan shroud.