Q: What be in the hole with a garment on top the valve cover on left on 1998 Ford Mustang

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I opened hood and there wasnt anything in mine and was.smelling oil burning on exhaust and lost gas mileage and motor idles up down from 1100 rpm too 800
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FORD did not use the 2.3 four cylinder in a 98 Mustang! However i am going to guess it is the pcv valve you are talking about, it should be there somewhere hanging on a hose close by gromet.
Yes it is a 3.8 it put the 4 cyl on there itself. Anyway the passenger side has no pcv in it and the other pcv is run to the breather tube??
Only one pcv valve! The breather is what lets the pcv valve work! So you need a pcv valve! Engine should be running rough or to fast at idle, is it? Google image search: (98 3.8 ford pcv valve location) on my screen it was the top left picture, click on one of these to see where it goes! Also under the hood is a vacuum hose diagram, check that out as well.