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thats boost control solenoid
the open port needs to remain open its a vent and originally had a small rectangular foam slid over the end
its job is to be a controlled bleed for the boost signal to the wastegate to allow increase in boost and then to be able to stop the bleed if knock is detected to lower the boost down to a safer level but cant lower it below the gates spring pressure (10-12psi)
make sure that all those vac lines from wastegate to solenoid to turbo cover are in good condition , yours look shot
any leaks in them or if the pop off the boost will be uncontrolled and can reach levels that will cause severe KR and detonate the motor causing major damage
, if you do replace its important not to discard the Y fitting and make sure it goes back correctly , it has a restricted port on one leg
also zip tie all ends
its not why the boost gauge wouldnt be working
the in dash boost gauge runs off the 3bar map sensor at the top of a/c box above the heater hoses . check the vac line to that sensor