Too bad you're all wrong!
It's actually an early prototype for a Mini branded toy.
You put a ping pong ball in the cup looking end, and blow through the other end and you shoot the ball in the air and try to catch it. Repeat. Waste the day away.
If it smells like fuel, thats because they recommend a quick dipping in fuel. It helps to add a light headed and euphoric feeling when you catch the ball. It also helps to make it harder to focus the better you get.
Just don't inhale, because that would be cheating
(not recommended for use by individuals under the age of 25)