It could be part time Select Trac or full time Quadra Trac.
Rear wheel, and possibly four wheel drive.
Rear wheel drive with option of either four wheel drive or all wheel drive.
My Jeep Grand Cherokee Laredo 4.0L is all-time 4wd and its a 1998 model...
The 4 wheel drive switch is located on top of the transfer case
A Grand Cherokee is either rear wheel drive or four wheel/all wheel drive.
The 2006 Jeep Grand-Cherokee has rear wheel drive.
The 2003 Jeep Grand-Cherokee has rear wheel drive.
The 2011 Jeep Grand-Cherokee has rear wheel drive.
The 2005 Jeep Grand-Cherokee has rear wheel drive.
The 2007 Jeep Grand-Cherokee has rear wheel drive.
The 2004 Jeep Grand-Cherokee has rear wheel drive.
The 2008 Jeep Grand-Cherokee has rear wheel drive.