The Cherokee used two transfer cases, Command-Trac and Selec-Trac.
The Command-Trac is the base-level transfer case. It offers 2WD (high range), 4WD high range (part-time), 4WD low range (part-time), and neutral. No full-time 4WD position.
At least as it was implemented from 1987 on, the Selec-Trac transfer case offered the same positions as above, with an additional full-time 4WD (high range) position.
"Part-time" means it is NOT suitable to be driven on pavement in 4WD. The front and rear driveshafts are locked and rotate at the same speed, so turning corners can bind up the drive line.
The Selec-Trac uses an internal differential in the transfer case to unlock the front and rear drive shafts in the full-time 4WD position. This allows the front wheels to track a different radius from the rear wheels when rounding corners, so it can be driven in 4WD on dry pavement.