Lost Wire

The color and the connector suggests a safety switch. I'm guessing since it just the one wire, it goes to the blade engagement in reverse safety switch. Should be located below or near the shifter. It grounds the magneto if you shift into reverse with the blade engaged. Owners often remove these so they can mow in reverse without disengaging the blades. This is usually not even a switch, just a spring steel contact that the steel shift arm contacts to ground the system.
 
Interesting, but I had the same question about the green wire on my KT745-3012 after taking it a part and then reassembling. The wire has a female connection on the end. I looked all over to see where it might go and finally settled on the highest likelihood of it being for the optional pressure switch that is not installed on my mower. Another difference is (facing the front of the engine) the wire is on the right side and comes from underneath the back metal shielding.
 
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