If your tank/setup is original, the sender is located at the other end of that tube from the tank. It is a circular unit, about the size of a thick hockey puck. The hockey puck will have a short piece of rubber hose attaching it to the copper tube. To test the system, you can attach a new piece of hose to the sensor, have someone watch the 3/4 full light in the head compartment, and blow lightly into the new rubber hose which is attached to the sensor - like blowing up a balloon but VERY lightly. The light should illuminate - be sure the bulb is OK first.
If the bulb illuminate, that shows that the sensor/circuit are ok. NOW you have to determine if the tube in the tank is ok. The only way to do that that I know of is to just stick a water hose in the pumpout fitting and fill the tank. If water starts coming out the vent before the light goes on, the tube in the tank is perforated and has to be replaced.
Obviously you could install a real tank-level system and that's certainly a good thing. But I have found the 3/4 full OEM system to work just fine for our use. I had to install a new 3/4 full sensor tube in our forward tank.
The OEM system is nothing more than a piece of tubing - can't recall the diameter - seems like it might be 1" but I could be wrong - with an adapter on top to accept the fitting for the 1/4" tube/hose. As the tank fills, the air pressure increases in the tube which activates the sensor/light. The length of the tube determines the point at which the light illuminates. IF the tube is too long, it will illuminate too early; If too short, the tank will be nearly full.