The factory knock sensor resembles an oxygen sensor, has a white barrel. On my 88 it is maybe 2 inches above the oil pan. It forward of the engine mount but not very much. The tip off is it uses the same connector as the fuel injectors. If recommend you install a new one since you have the engine out.
Guys says you can get them at NAPA but I had no luck. I paid around $70 for one at the dealer. The new one is a completely different design. They give you a stud to screw into the block then you place the doughnut shaped knock sensor on the stud, apply lock-tite to the threads and torque to 13 ft lbs.