The arm on the transmission is supposed to have a little round ball on the end of the stud that the cable snaps onto. It appears that that ball has rusted and snapped off. You're going to need a new arm for the transmission. Luckily, this is something that can be pulled off a junkyard transmission in under 5 minutes and only cost a couple dollars. It bolts onto the transmission shifter end on the side of the transmission case with a single nut. When you reinstall the cable on the new arm, you may or may not have to readjust the cable. Probably not since it's the same cable and transmission, but just something to keep in mind. And even if you do, it's a pretty simple procedure to adjust.