Hello Wallace,
If I recall correctly, the early alternators had no plug and all lugs for ring terminals. They had a separate lug for a small ring connector and brown wire from the main harness. Later alternators had the brown ground wire included in the three prong plug (center bottom position). The capacitor is a radio static filter and yes it does have its own screw ground.
Wiring on the alternator (looking at it from the back, with the back of the plug off) is red wire on left (D+), black wire on the right (DF) and the brown on the lower center (D-).
Early alternators Bosch #0 120 400 608 (July 63 to July 65) had all lug connections with ring terminals on the wiring harnesses. It was replaced by Bosch # 0 120 400 505 ( July 65 to July 66) and finally Bosch #0 120 400 535 MB part # 002 154 49 02