1997 Toyota Corolla Re. Speed sensor circuit bad. Possibl

Shifting erratically, engine light on, P0500 code. VSS or circuit malfunction.

I followed the haynes manual to determine if the circuit or the speed sensor is bad. Checked voltage on two outside terminals 1 & 3 of wiring harness. Should be battery votage but shows only 2 volts(ish). Supplied 12 volts to terminals 1 and 2, tested voltage on sensor at terminals 2 and 3, and found the required fluctuation of near twelve to near zero 4 times per revolution of the shaft.

Now what. I have tried jumping a ground on terminal 3 but that made the speedometer not work. Not sure what to do now. I probably need to check the cluster, but I do not know what I am looking for.

Thanks for any help!

PS Question.

Which terminal supplies the genuine ground 2 or 3? It is confusing when I look at the wiring schematics.

PP