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Here's how the three-wire mod is applied to a typical Telecaster neck pickup.
Most Tele neck pickups are two-wire units. The metal cover has three little tabs that reach around the black base plate and are bent over a little bit to grip the plate and hold the cover in place.
The ground wire on this pickup is the black one, connected to that shiny blob of solder in an eyelet on the base plate (A).
The hot wire is the yellow one, soldered to the blob at (C). Typically there's a little uninsulated jumper wire soldered between A and B. That's what grounds the metal cover.
On this pickup, the jumper is removed and a 3rd wire (red) is soldered on as the shield ground.
This isolates the metal cover from the coil wires.