Do not ask me what got me into looking at this.

And it drove me crazy until I found the circuit diagram.
So if it measures 1.9 V, it should say check washer fluid level; if it measures 2.6 V, then it should say check coolant level. However, often the messages are not telling exactly what is wrong. In this case, what if the voltage is between 1.9 V - 2.6 V, 2.6 V - 3.5 V, and 3.5 V -8.0 V? Somehow some contact resistance can mess up this whole design. They might be just better off using two separate circuits.
The washer fluid level sensor is easy to clean and check than the coolant level sensor.
However, the washer fluid level sensor is more than twice the price than the coolant level sensor.
In the older models (W124), one can simply unplug the coolant level sensor but not in these W210's. If you unplug one of the two sensors, it says display defective, LOL.
The messages for the scenarios I posted earlier are:
Voltage---------------------------------------------------------------Message
1) both working (~ 3.5 V)-------------------------------------------No message
2) washer level sensor working only (~ 2.6 V)----------------------Coolant Check Level
3) Coolant level sensor working only (~ 1.9 V)----------------------Washer Fluid Check Level
4) Both not working (0 V)--------------------------------------------Do not know but probably Display Defective
5) Open circuit (8.0 V)------------------------------------------------Display Defective
So in my case a couple week ago, the Coolant Check Level message came on. I stopped the car immediately and checked the coolant recovery tank and fluid was full. Did a lot of reading and unplugged the washer level (which was full as well) sensor and Display Defective came on. Cleaned both the washer sensor contacts and the plug contacts with electric cleaner and put everything back. So far no message for a few weeks now.
My conclusion (so far) is that my coolant level sensor is fine (so is the washer fluid level sensor) but there was a little corrosion on the washer level sensor contacts and that trigged the (wrong) display message.