Can ALOT of water cause the KSDS to give a false readings?

I drove home in a extremly heavy rain and standing water about 4 days ago.
The next day after I get home i notice the check engine light is blinking and
the car won't go over 60mph and is stuttering  for a second on take off (LIMP
MODE).  I did a ODBII and it gives me P1326 and says no DTC Definition
found.  I understand that the code is for KSDS? I think, but is it also possible
that the wires or KSDS got wet and is giving me a false reading since it did
actually happen during all this rain and standing water?  I haven't heard any
engine noises or other than the Limp Mode problems