I've had to change out a bunch of oil sending units on that era of F-150. Pull the sender out and install a regular oil/hydraulic line with a quality gauge of known accuracy.
If the engine is knocking it needs a rebuild. The rod bearings are probably cooked. It has, IIRC, the non-HO (aka LOPO) firing order.
The oil pumps on a 302 are excellent units that last the life of the engine usually. Of course it could also be sludged up and the oil pick-up partially obstructed too. They aren't easy to pull a valve cover and check unfortunately.
To replace the oil pump you need to remove the upper intake. Unbolt the motor mounts. Then lift up the engine and remover the pan bolts. The pan will not come out until the pump is removed so get the pump loose and let it fall into the pan. Then you can pull it all out. Reverse process for install.
You can do it without pulling the intake. unbolt the exhaust, motor mounts and fan shroud. Jack the engine up by the harmonic balancer until the intake touches the firewall. Cut some wood blocks to stick between the motor mounts and frame. lower the jack and let the engine sit on the wood blocks. Now you can unbolt the pan and drop it. You have to unbolt the oil pump to take the pan out though. The pump is driven by a hex shaped shaft that sticks up into the distributor gear. Bolting the new pump back in require you to hold that shaft in place while starting the bolts. I found that by putting a zip tie around the pump and shaft allowed me to hold the pump and shaft with one hand and start the bolts with the other. It can be tricky!
It's not a terribly hard job but it takes time and patience. But if the engine is knocking chances are it needs bearings and an oil pump won't solve that.