The sensor encircling #1 plug wire is a reference (TDC) sensor used by the Knock Control Computer. There are three different sensors relaying the same information to three different places on the 745. The one on the front of the engine is solely for use by the diagnostic connector, the one on the bellhousing (along with the speed sensor) is used by the Motronic and the third is the the one on #1 plug wire.