That switch appears to be a generic single pole, double throw type switch.
In other words it has a -
a Common terminal
a normally open terminal
a normally closed terminal.
You want to connect your wires to the
Common and Normally closed terminals.
Thus the switch will pass current when power is applied. The light will illuminate.
When the engine oil pressure rises above the pre set value, the normally closed contact, will Open. The light goes out.
Likewise, if the pressure drops, the normally closed contact will again close.
The light will come back on.
In most cases, as you can see from the above, the normally open terminal, is not used.
All this assumes that you only have the one device connected to it. i.e it is wired like factory.
You will prob. find that one of your wires is just an earth/ ground. This is just because the switch you have is different to factory and doesnt have the ability to ground itself.
No dramas there.
If you think your LED is buggered, best to sort that out first.i.e replace it
Edited by RallyRed, 07 January 2019 - 08:01 AM.