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Can you see the slave cylinder moving when the clutch depressed. If so, problem most likely internal to clutch. Possible broken shift fork... seized throw out bearing..... damaged pressure plate.... worn out clutch disc. The tranny will have to be removed for inspection
Hello: Check the slave cylinder for leaks. If leaking, replace it then make sure the cylinder for the clutch is full then bleed it, after bleeding it should work. If not then the clutch cylinder may also be bad.
I don't have that shop manual, but the slave cylinder looks like a small brake master cylinder and is on the firewall on the driver side.
Check to make sure floor pan is not split by slave cylinder. Some had weak floors that needed reinforcing. Ford had a kit.
Otherwise, replace slave cylinder. tascafordparts.com sells at discount.
Please rate as fixya if this solves your problem.
Report back and good luck