The knock sensor does what it says- it senses knocks. Whenever the engine knocks, due to lugging, out of time, poor gas or whatever, the knock sensor sends a signal to the ECU ( engine computer) to adjust the engine tuning to eliminate the knock. Most EFI vehicles have them.
They are easy to test. Remove the electrical connector from the knock sensor, connect a digital multimeter set to the lowest AC volts scale. Knock on the sensor with a screwdriver or something and watch the meter - you should see a small voltage generated. Knock harder- tthe voltage should increase. If so, and close to spec- the sensor is good. Then you would check the wiring between sensor and ECU for continuity.
I dont know where the knock sensor is located on the V6 but it should be easy to find out.