Paddle wheel...
The paddle wheel has small magnets in each of the little paddles.  When it rotates around that pick-up bar, it sends an electrical impulse.  The faster the wheel spins, the faster the pulse.
You can take that plug connection loose and use a voltage meter.  Set it to resistance and then, spin it by hand.  You should see the meter go up and down in readings from the time it's at rest to the time your spinning it.  If you see no resistance changing, then it's bad.............:cheers: