I'll confirm Dane's assessment.
That is a plug from when the transmission was manufactured.
When the vehicle is assembled on the line the dipstick tube pushes it into the pan.
Jim,
Lil'Red is a '87 F250 HD, 4.10's, 1356 4x4, Zf-5, 3G, PMGR, Saginaw PS, desmogged with a Holley 80508 and Performer intake.
Too much other stuff to mention.