You need a new carrier for the front axle. As twodoorXJ said, 3.54 is the low end for that carrier. The stock carrier for the C-8.25 is already on the low side of the break. You can go clear down to 4.88 with it.
Let's be honest though. If you're fitting 33"s or 35"s, you should probably look into lockers of some type.(unless it's a street jeep)
Randy's Ring&Pinion has a great web site for looking that kind of info up. Here's their page for the Cherokee:
http://www.ringpinion.com/DiffSide....eID=7&Make=Jeep&ModelID=393&Model=XJ+Cherokee