Fuel sender wire routing
If rewiring, I would sheath that wire, plus strip off all the friable woven factory cover and re-sheath those. I used PVC tubing for electrical harnesses (SPC Tech, Amphenol, ... buy on ebay), but only where you can pull the terminals thru. Others use nylon mesh, which expands like a Chinese finger trap to pass terminals thru, or split loom where you can't pass wires thru.
The factory sender ground is via a steel clip which connects the fuel tubing around the non-conducting rubber tubing and hopefully connects to the body via the tubing clips, but it can corrode. In my cars, I attached a wire to the sender. Some new senders have a ground clip for that (recall), otherwise I used a hose clamp on the outlet tube, with silicone grease. I ran the ground wire thru the grommet to a screw in the trunk.