Looks like my header burnt it a little too. It looks like a plastic coolant line.

 

It's either the vent line for the front axle, transfer case, or the vent for the transmission. If you look in your pic you will see the other vent at the top right of that awesome red circle . Make sure the end is not melted closed and zip tie it up with the other vent line.

 

x2 on vent line. It winds into a 1/2 or 3/4 oval and is a hard plastic.

 

I hope I'm not the only one who first tugged on this thinking it was the dip stick for tranny fluid.