Here's some information from the 1996 Shop Manual
Description, Intake Air Temperature (IAT) Sensor
The intake air temperature sensor (IAT sensor) (12A697) changes resistance in response to intake air temperature. The IAT sensor resistance decreases as the surrounding air temperature increases. This provides a signal to the PCM indicating temperature of the incoming intake air.
Intake Air Temperature Sensor (from PCM manual )
The Intake Air Temperature (IAT) Sensors are thermistor devices in which resistance changes with temperature. The electrical resistance of a thermistor decreases as the temperature increases, and increases as the temperature decreases. The varying resistance affects the voltage drop across the sensor terminals and provides electrical signals to the PCM corresponding to temperature.
Thermistor-type sensors are considered passive sensors. A passive sensor is connected to a voltage divider network so that varying the resistance of the passive sensor causes a variation in total current flow.
Voltage that is dropped across a fixed resistor in a series with the sensor resistor determines the voltage signal at the PCM. This voltage signal is equal to the reference voltage minus the voltage drop across the fixed resistor.
The IAT provides air temperature information to the PCM. The PCM uses the air temperature information as correction factors in the calculation of fuel, spark and MAF.
The IAT sensor provides a quicker temperature change response time than the ECT sensor.
Removal and Installation, Intake Air Temperature (IAT) Sensor
Note:
The intake air temperature sensor (IAT sensor) (12A697) is located in the engine air cleaner cover. When installing, use care not to damage plastic locking tabs.
Here's a shot of it
Removal and Installation
1. Disconnect battery ground cable.
2. Disconnect engine control sensor wiring from intake air temperature sensor.
3. Turn intake air temperature sensor 90 degrees counterclockwise and remove from engine air cleaner cover.
4. Inspect intake air temperature sensor O-ring for damage or deterioration and replace as necessary.
5. To install, reverse Removal procedure.