That goes to the throttle body spacer....
Notice the 2 small pieces of tubing the that connect to the throttle body spacer in the picture below
There is also the return end on the other side of the throttle body spacer; it connects to the return line for the passenger compartment heater.
The following are diagrams courtesy of Tmoss & Stang&2birds
Location of the TPS, IAB, and the 10-pin connectors on a 5.0, picture by TMoss:
Click on the picture to enlarge it.
If you saw coolant squirting out, the coolant level is probably low as well. I highly suggest that you reconnect the line. Check the other side of the throttle body spacer to make sure the rubber tubing is in place and isn't damaged or missing.
See the following website for some help from Tmoss (diagram designer) & Stang&2Birds (website host) for help on 86-95 wiring;
http://www.veryuseful.com/mustang/tech/engine/ Everyone should bookmark this site.
94-95 Mustang wiring diagrams
http://www.veryuseful.com/mustang/tech/engine/#95-95Diagrams
Complete computer, actuator & sensor wiring diagram for 91-93 Mass Air Mustangs
http://www.veryuseful.com/mustang/tech/engine/images/91-93_5.0_EEC_Wiring_Diagram.gif
Complete computer, actuator & sensor wiring diagram for 88-91 Mass Air Mustangs
http://www.veryuseful.com/mustang/tech/engine/images/88-91_5.0_EEC_Wiring_Diagram.gif
Ignition switch wiring
http://www.veryuseful.com/mustang/tech/engine/images/IgnitionSwitchWiring.gif
Fuel, alternator, A/C and ignition wiring
http://www.veryuseful.com/mustang/tech/engine/images/fuel-alt-links-ign-ac.gif
O2 sensor wiring harness
http://www.veryuseful.com/mustang/tech/engine/images/mustangO2Harness.gif
Vacuum diagram 89-93 Mustangs
http://www.veryuseful.com/mustang/tech/engine/images/mustangFoxFordVacuumDiagram.jpg
HVAC vacuum diagram
http://www.veryuseful.com/mustang/tech/engine/images/Mustang_AC_heat_vacuum_controls.gif
TFI module differences & pin out
http://www.veryuseful.com/mustang/tech/engine/images/TFI_5.0_comparison.gif
Fuse box layout
http://www.veryuseful.com/mustang/tech/engine/images/MustangFuseBox.gif
Mustang 5.0 Lights and Radio schematic, by TMoss:
http://www.veryuseful.com/mustang/tech/engine/images/mustangFoxLights-Radio_diag.gif
87-92 power window wiring
http://www.veryuseful.com/mustang/tech/engine/images/mustang87-92 PowerWindowWiring.gif
93 power window wiring
http://www.veryuseful.com/mustang/tech/engine/images/mustang93PowerWindows.gif
T5 Cutaway showing T5 internal parts
http://www.veryuseful.com/mustang/tech/engine/images/5_Speed_Cutaway_Illustrated.jpg
Visual comparison of the Ford Fuel Injectors, picture by TMoss:
http://www.veryuseful.com/mustang/tech/engine/images/Ford_Injector_Guide.jpg
Convertible top motor wiring
http://www.veryuseful.com/mustang/tech/engine/images/mustang88VertTopMotorCkt.gif
Engine mounted fuel injector harness
http://www.veryuseful.com/mustang/tech/engine/images/mustangEngineHarness.gif
Location of the TPS, IAB, and the 10-pin connectors on a 5.0, picture by TMoss:
http://www.veryuseful.com/mustang/tech/engine/images/TPS_IAB_Pic.jpg
Starter circuit
http://forums.stangnet.com/attachment.php?attachmentid=21328&d=1080916057