Correct. It's a diode. There's only one of them. If you want to replace it, you can buy diodes at any electronics shop, but it won't necessarily look the same as what you have. You'll need one that will carry a couple of amps because it powers up the tail light, front parking light and instrument lights in normal running mode (when the ignition switch and headlight switch are on).
When the bike is parked and you want to leave the parking lights on, then the ignition switch is put in the park position which powers up the tail and front parking lights via another feed. The diode is to stop the parking light circuit back-feeding through the headlight switch. If the headlight switch is on, then it will feed back into the ignition system, which would allow the bike to be started. Not something you really want when the bike left unattended!
However. It's a bit like an appendix. You can get rid of it without any problems if you want to. Who ever uses the parking light function anyway?
Just take it out and reconnect the two wires without the diode. If you leave the parking light feed from the ignition switch connected, you can still use the parking light facility. Just make sure the headlight switch off, otherwise the ignition will come on. You may want to disconnect the parking light feed from the ignition switch just to prevent that possibility, but it isn't strictly necessary.
Incidentally, the factory wiring diagrams for the 750s and early triples show the diode arse about. They eventually drew it the right way around for the post 1977 triples. It disappeared altogether with the BTZ ignition bikes.
Cheers,
Cam