Re: Water pump replacement '72 Evinrude , extra parts!
That O-ring (part #11 in the diagram) above the water pump goes in the O-ring groove in the driveshaft, just below the splines which engage the crankshaft. This seals water out of the driveshaft/crankshaft splines.
OMC is just showing the 'stackup' of parts in the diagram, sometimes you'll see lines drawn thru a whole series of parts, which let you know how they're stacked-up.
You may or may not have had an O-ring on the shaft when you pulled the lower unit down; sometimes the O-ring stays in the crankshaft, other times a P.O. may have worked on it and neglected to install.
It might be a good idea to look up into the crank splines with a strong lite, to make sure it's free of stray O-rings and other debris.
Be sure to spread a thin layer of waterproof grease on the crank splines and O-ring before reinstalling the lower unit. Wipe off any grease on the very top of the driveshaft, otherwise you stand the chance of a 'hydraulic lock' and preload/damage to engine bearings.
HTH...........ed