I agree with all the above , it looks like the PO may have had a problem with the end of the plug before..Best bet. take the plug out of the equation..use the connectors as seabob4 has shown, good crimpers and a heat gun or hair dryer..if you must add wire to it only use marine wire..just my $.02
I know.. kinda a strange huh.. My gut tells me that it's the ground wire to the fuel sending unit. When I replaced the sender the ground wire was red in color which kinda puzzled me at first but when I installed the new unit using the red wire as the ground it worked perfectly.