Take the green wire off of the sender unit, and ground it. With the key on, the temp gauge should peg HOT.
If it does not, you either have a wiring issue, or the gauge is kaput. There shold be a small resistor bolted across the terminals of the gauge itself, and if it is bad, the gauge will not read correctly, or may not work at all.
If the gauge pegs HOT, then you have verified the wiring and the gauge, so the only other problem would be the sender.
Just to be sure, you are testing/checking the sender unit on the driver side, between the two front cylinders correct? There are two temp senders...one on the driver side for the temp gauge, and one on the passenger side for the Transmission Controlled Spark(TCS) system.

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