A 3/8 extension is what is supposed to work in these plugs. Because of corrosion you would need to grind the tip of the extension to get it to fit. Don't grind too much it needs to fit snugly. Tap it in with a hammer. That's how I got mine out.
Actually it's not a 3/8 extension, even when new (I have some of those threaded plugs that are new and a 3/8 extension is still too big)
I keep an old broken screwdriver around for removing those plugs, the square end (where the handle used to be) is a perfect fit. I snap a pair of vice grips on the "tool", heat the plug a little bit and it spins right out.
Though the original poster is pulling the wrong plug out if he wants to install an original 1/8" Electric Sender. The plug he's trying to remove is for an aftermarket mechanical sender. On his intake, it looks like someone threaded a bolt into the hole.
See attached pictures from my '84 D50 for reference.
The factory electric sender always goes in the small hole closest to the head. (This applies to all factory intakes and pretty much every aftermarket intake too)