Receptical Box located In bottom kicthen cabinet
A /3 cable like that can mean 3-way switch, or a Multi-Wire Branch Circuit (probably not), or a half-switched receptacle (with red being switched-hot) e.g. for dishwasher/disposal.  It might be both at once; dishwasher+disposal are often on a MWBC.  

An octagon box like that is usually for lights. None of the other knockouts appear to be removed.  It's possible to put a receptacle in an octagon box with a special magic cover plate. 



However it can't be a GFCI recep.  I have seen pictures of similar cover plates with Decora format openings, however, I have my suspicion they're not legit. Regardless, GFCI receps are very bulky and will not fit inside that box.  Put the GFCI device somewhere "upstream" (closer to the panel) - if necessary in the panel as a GFCI breaker. Given the age of the work you might also choose AFCI+GFCI dual mode.  AFCI protects against bad wires starting fires. 

It's unlikely it is grounded.  However it might be using an armored cable wiring method that brings ground on the cable armor.  If so, the case would be ground. You ground devices either with hard flush bare metal contact with the box, or, you run a pigtail off the hole tapped #10-32 in the back of the box.  It appears that hole is being used by the screw on the left, so move the screw farther left.