sending units...
Definitely the sending unit....
It is easy to replace.
The most common failure points are the harness connectors at the top of the sending unit housing.
When you drop the tank you will easily recognize corrosion and fraying of the wires, and in some cases a failed plastic connector.
All it takes is any moisture/corrosion on any bare wire and your guage is worthless.
I have done this repair more times than I care to talk about...
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1988 GT Convertible
331 10:1 TW heads, GT-40 intake, MSD, TRW flattops, B Cam w/ 1.7's, MAC exhaust, 24's, 70 TB, 76 MAF, 3.73's, Pro 5.0, Koni's, Anderson PMS, Wideband 02, yatta, yatta...
One week with new motor, two speeding tickets...joy
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