I'm not sure what you're looking at, but the wire connects to the top of the fan switch. You have to reach down with some LONG needle nose pliers and squeeze the sides of the connector to release it. It's really not that hard to do, but it's hard to explain exactly.
I changed the fan switch on my 86 SE twice. The first one I put in was too cold, and the fan ran all of the time. The 2nd one was Rodney's 210/200 degree switch, which is perfect for the stock (195 degree) thermostat. The stock switch is 235/225, which comes on too late (IMHO).
Edit: I think I have another 210/200 switch at home somewhere. I bought two before I found out that my other car (88 duke) doesn't have a fan switch. Rodney sells them for $19 plus $3.50 s/h. Anybody want to come by and buy mine for $20?