Without data sheet (I've googled for 5 minutes and given up to watch the F1 qualifying instead) - and without knowing the sensor supply voltage range, but assuming it's good for 12-24V, I'd suggest buying an opto-isolator (maybe mounted on a board)... or 3 (however many sensors you have) and, with suitable current limiting resistor for the supply voltage, wire the input in series with the sensor. From the little I've gleaned of the internet these. devices have an activated current of <1mA and a de-activated current of what you say - 200mA? Provided the 1mA is insufficient to transfer through the opto-isolator then it's an easy solution.

You question use of an Arduino... yes, you could, but it's a sledgehammer solution, plus you have to think about your power-up behaviour before IO is configured. For the Arduino the obvious solution is to use an analogue input to measure the voltage across the sensor with a current-limiting resistor in series with the supply voltage to the sensor. You would have a simple threshold (with hysteresis?) measuring software to drive the digital output,

Beyond that, you could use a comparator circuit - op-amp, preset-pot and, again, series resistor on the sensor, monitor the voltage across the sensor (nee the voltage drop across the series-limiting resistor).

Loads of different ways, just need to think about what suits your experience and equipment.

My 'can't-be-arsed-making-this-into-a-project' solution would start with a cheap opto-isolator board, checking that the board has mounting holes. (so many small boards omit these!),

More complex solutions (and the real high-integrity solutions) would likely have multiple comparators and logic to detect nominal current levels, fail-open and fail-short faults. Easy to do but heading into 'project' mode.