That was for a Volvo dealer tool for checking the timing, and refered to as something like a timing readout meter pick up. The two pins were refered to as the timing readout pin set. You don't need to replace the damaged part unless you want to have the timing checked with that specific tool at the Volvo dealer. You will note it makes no electrical connection to the car. There is a connector attached under one of the acorn nuts which holds the cam cover down.

I'd be glad to sell you a used one if you really wanted. It will never be needed on our cars.