First let me say I am no expert and have not worked on an inline Chevy engine since HS autoshop way back when!! The large sender that you have the orange wire to is the oil pressure sender that goes to the gauge, the other smaller sender is a switch and on my late 80s 5.7L it is used for a low oil pressure warning system. Does your boat have a low oil pressure/over heat warning system? I could also be used for a electric fuel pump. Other that that I am not sure why the small sender is there. My wires are light blue for the gauge and tan/blue for the warning system so that is no help. Looking at the wiring diagram for a 165 I6 the orange is correct and the purple is not used, it states this in one of the other engine diagrams that it is used for accessories. Manual 3 page 3F-11 which is the diagram for a 165 I6 and it show the purple wire going no where.
Are you planning of test running the engine before install. It is a good idea if you can do it, .this way you can check for leaks or issues, if any arise it an easier fix on the ground. I rigged up a pallet and some gauges for the test run of my 7.4L it did not **** my neighbors off to much. Here is a Video
And keep up the good work.