It is just a washer (in this case a yellow plastic numberplate cap lower section with a slit cut in it to get it over the cable). It basically pulls back the outer sheath to take up the slack. This has the effect of making sure that all the turn of the key moves the release catch. Sometimes the first part of the key movement just takes up some of the cable slack and stops the catch actually 'clearing' completely.
Worth a try if you're having trouble with the seat release and a cheap mod if it works for you!!!
