If you're looking at the wiring harness supplied with
the kit, you might say, "that's nice, but do I leave the
whole harness sticking out the back of the headlight
housing?".
The answer, of course, is 'No' (but you could if you
wanted to), that's why you drilled a 1" hole in the back
of the housing.
Take an awl (or a metal skewer) & poke 2 holes in the
grommet. Then, you need to cut & splice the wiring
harness that came with the kit so you can pass the wires
thru the grommet.
It should look something like this:
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