Knock sensor.
Thought it might be a temp sensor at first but the part number is written right on the side. Ford part numbers often end with a revision mark, e.g. -a or -aa, especially parts for older vehicles.
F37F-12A699-AA
It'll screw in to the side of the block somewhere, I guess. Never seen one that looks like this, but it's basically a microphone that listens for detonation to tell the ECU to adjust timing. Usually they're shaped like a donut and are held on with a bolt.
https://www.autozone.com/engine-management/knock-sensor/duralast-knock-sensor-su10550/99584_0_0 If Found, Return to the Wild