Float, one goes to ground the other to one leg of your lamp. The other leg of your lamp goes to IGN.
When the float activates it puts a ground completing the path for the lite to turn on.
Now...using an LED instead of a lamp may be better in two ways,one is that it draws less current and is "nicer" to the low alky sending unit. Secondly, they dont burnout(unless hooked up without resistor) and all is required is a simple trip to radio shack. You'll need an led of your choosing and a 1K resistor 1/4 watt. If you want the LED brighter drop the resistance..dimmer increase the resistance. Lastly..you can buy flashing LED's that will work with the above mentioned resistor.
The polarity of the led you will have to watch..but simple trial and error will correct this. And if you use a resistor no harm will happen. As far as what leg..doesnt matter.
HTH