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Yes, what you are seeing is the "regulated" +5V DC from the voltage regulator in the instrument cluster. It takes the battery +12V DC and "pulses" it to where it appears to the instruments as about +5V. Its not a real good regulator (points type) but that is how they did it back before solid state electronics became the norm.
I am assuming that you are checking the wire in the rear of the car when it is removed from the sending unit stud, one probe to the wire and one probe to ground?
When connected to the sending unit, the sending unit provides a variable resistance TO GROUND. MORE resistance, less fuel indicated on gauge, LESS resistance, more fuel indicated on gauge.