There is a component on my front axle that i can not identify from the shop manual. A wire running to it from somewhere up in the motor is frayed and about to separate. Any idea what this component is? See my attached photo. Thanks!

 

That's the switch that controls the 4x4 lite in the dash. Very simple circuit. Just repair the wire, and call it a day.

 

Outstanding! I'll splice it and call it a day.