That ground wire goes to either your battery or to the top starter motor mounting bolt, i read on SDF the other day of people mounting the earth to the flywheel cover, you ideally want the earth as close to the starter motor so it doesn't cause electrolysis and eat away your nice new aluminum motor
as for your black water hoses hook them up start the jetski and hold your hand on the cylinder head and also cylinder walls to see if it's heating up, u should ideally be able to hold your hand on the motor and it will only get warm