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gas gauge problems 200 1988

With my 1988 240 the gas gauge will hit the redline after about 240 miles or so (actually, it tends to hover around it, sometimes it will stay in the red for a while, then go up a little bit above it for a time). Also, it starts to drop rather quickly after it starts reading below 1/2 tank. I've never run it until E so i'm not sure how long it will actually go. I'm just wondering what could be causing this, a bad gauge, bad floater??? BTW, this is combined city/highway driving. Thanks in advance for the info/advice.

1988 240DK 152K(?)






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