1971 Demon Insturment Cluster Question.

Picture one is correct, I have a 69 Fastback, and the FSM shows that is correct.
The filter is attached to the power out (after the IVR), and the bi-metal IVR is part of the fuel gauge. I'm assuming you have a Rallye cluster, similar to the 67-69 Barracudas.
When I put my cluster back in, I removed the IVR in the fuel gauge and went with an external IVR from RTE.
If you go to there site they have pictures of what to do, and their parts, below is a link.
http://rt-eng.com/mediawiki/images/e/e7/InternalLimiterFixUsingIVR3.pdf