Ah... Sorry, I misunderstod.
DONT CUT THE WIRE!!!!!!!!!!!!!!!!!!!!
You're going to have to drill a larger hole in the transom. Lots of different methods of sealing the hole... but you absolutely do have to seal the hole. Here's what i did and it's still good 3 years later. Overdrill the hole, enough to get the cable through and large enough to get a finger in. Once drilled, smear 5200 in there to seal the wood transom. Let it cure a bit, insert the wire, mount the transducer & wire. My GPS came with an screw on escuchion plate, so what I did is fill the hole with 5200, wiggle the wire a bit to make sure you get good consolidation, screw the plate on so that the extra 5200 squeezes out, then go to the inside and smear more 5200 into the hole from there. Please note that my hole was well above the water-line. If your's is below the waterline, you should probably do something that would be more watertight. I think if you were to search something like "sealing transom holes" you would probably find other methods... most of which would be better than mine.