Where does this cable go?

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Goes in the clutch, park brake assembly.

Hole above and slightly to the right..to the left of the big cables.
 
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Blaaster is correct as to where it goes

BUT, just snip the wires and forget about it... It causes as many problems as the TORs!!!

Its the switch to kill the quad if you give it gas with the parking brake on.

Removing it will not change the performance or anything, just saves you headaches....

My parking brake was a little loose up there, and i accidently hit it while riding once... Had to ride back with one hang holding the switch to keep it running. REMOVE IT :p I:I
 
The wires need to be snipped for it to run... Unless he taped the switch in...

Either way, follow it back as far as possible and snip it off, but make sure they cant touch I:I