yo
That is the ignition key warning switch terminal and wire
Key-in-Ignition Warning Overview in a 96 from Workshop Manual; = to your year; "...The warning chime/buzzer sounds when the driver's door is open with
the key in the ignition switch lock cylinder (11582), and continues to sound until the key is removed or the door is closed. When the key is in the ignition switch lock cylinder, the key-in-ignition switch is closed and ground is supplied to the warning chime/buzzer module through Circuit 158 (BK/PK). When the driver's door is open, the driver's door lamp switch (13713) is closed
& by Ford for 96; = to your year;
Test the steering column ignition system mechanical operation by rotating the ignition switch lock cylinder (11582) through all positions of the ignition switch. The movement should feel smooth with no sticking or binding. The ignition system should return from the START position back to the ON position without assistance (spring return). If sticking or binding is encountered, check for the following:
burrs on the ignition switch lock cylinder
binding ignition switch lock cylinder
shroud rubbing against ignition switch lock cylinder
burrs or foreign material around the rack-and-pinion actuator in the housing of the ignition switch lock cylinder
insufficient **** on actuator
binding ignition switch
Removal (With Key)
1. Disconnect negative battery cable. Ensure gear selector is in Park . On Pickup, and Villager, remove steering wheel and steering column shrouds.
Disconnect key warning switch electrical connector. On Aerostar and Van, locate access hole in steering column shroud (below lock cylinder).
2. On all models, using key, turn lock cylinder to RUN position. Using a 1/8" (3.17 mm) diameter pin or punch, depress retaining pin located in outer edge of lock cylinder housing, and pull out lock cylinder. See Fig. 1
Installation --
1. Turn lock cylinder to RUN position. Depress retaining pin. Insert lock cylinder into housing. Ensure tab on end of lock cylinder aligns with slot in ignition drive gear and lock cylinder is fully engaged in housing.
2. Using key, turn lock cylinder to OFF position. To complete installation, reverse removal procedure. Check lock cylinder and ignition switch functions. Ensure column locks when switch is in LOCK position.
Find another Ford dealer; call Parts Manager and tell them your dealer could not help; some are iffy; my former (now closed, sadly) local dealer parts folks were A#1; they would even print out the parts diagrams for me,
BWD has them too;
http://www.aloa.bz/resourcelib/pdf/BWD-04.pdf
right up top on first page;
avail @ NAPA, etc. or by on-line @
http://www.rockauto.com/catalog/raframecatalog.php?a=Search%2Bfor%2BSTANDARD%2BMOTOR%2BPRODUCTS%2BUS175L