
I am wondering how I am going to replace this outlet.
It is dead as I've tested for power and got nothing.
It has 2 wires only. Please help, TY.

I am wondering how I am going to replace this outlet.
It is dead as I've tested for power and got nothing.
It has 2 wires only. Please help, TY.
What you need is a wire tracer. There are two types: one for live wires, the other for dead wires. Your local tool lending library may be able to help.
It's quite possible you won't find the other end of the wire, or that it was disconnected in some other renovation. It might drop into the basement, or head in some crazy direction.
And while K&T is good stuff: https://diy.stackexchange.com/a/20279/5960 this one may not be worth saving. At a minimum you'd want to put new shrink wrap on the wires through the metal box, and use emery paper to brighten up the copper. Then put a two prong outlet in.
The box shown was installed sometime after the original system was put in. It is an old cut in box and in poor shape. You can tell because of the little clips bent around the sides of the box are from "fishbones" (dry wall hangers).
So the first thing I would do is bend the tabs open and grabbing the side of the box with a set of needle nose pliers and carefully pull the box out. Be sure and make sure you have killed the circuit before doing this. This way you can look into the wall and see where the receptacle is attached to the original circuit or at least get a direction on where to look. Chances are circuit went bad at this original tap. At least you may be able to trace out the circuit from there and find and correct the problem.
When you do find and correct the problem and like I said the entire wiring and box is in bad shape. I would replace everything from the original tap to a new box. Wire nuts, conductors, box, dry wall hangers, etc. and if possible bring everything up to code.
Hope this helps and good luck.
With all the black in the back of that metal box and the condition of the cloth braid I would say the outlet has shorted out in the past. If not updating the wire I would at least get some heat shrink tubing slide it over the wire past the cloth and shrink it down for safety prior to replacing the outlet. Next I would locate the source for this branch circuit, verify the fuse is not blown or the breaker is not tripped, if the source is good when the short or whatever caused the damage to the box it may have caused a wire to fail this usually happens at a junction, very possibly the next outlet close to this one or in the attic since there is only 1 pair it is the last outlet in a chain or fed from a junction box normally in the attic possibly in the crawl space of not fed from the prior outlet.